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UPDATE 1-Resurgence in COVID-19 cases slows oil demand rebound -IEA

Published 19/01/2021, 10:02
UPDATE 1-Resurgence in COVID-19 cases slows oil demand rebound -IEA

LONDON, Jan 19 (Reuters) - Oil demand recovery will take a
hit from a spike in new coronavirus cases before vaccine
roll-outs and stimulus measures help in the second half of the
year, International Energy Agency (IEA) said on Tuesday.
"Border closures, social distancing measures and
shutdowns...will continue to constrain fuel demand until
vaccines are more widely distributed, most likely only by the
second half of the year," it said in its monthly report.
"This recovery mainly reflects the impact of fiscal and
monetary support packages as well as the effectiveness of steps
to resolve the pandemic," the IEA said.
Noting that an improvement to global oil demand went into
reverse in December, the Paris-based watchdog lowered its
forecast for the first quarter by 580,000 barrels per day (bpd)
and its outlook for 2021 by 300,000 bpd.
Supply and demand are on track for recovery this year, and
efforts by major producers to balance the market by reining in
output are helping draw down oil stocks worldwide.
Given the expected increase in the second half of the year,
however, "much more oil is likely to be required".


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