By Peter Nurse
Investing.com - Global oil demand is likely to drop by a record 9.3 million barrels per day in 2020 as the Covid-19 pandemic brings mobility - and consequently fuel demand - almost to a halt, the International Energy Agency said Wednesday.
Demand in April is estimated to be 29 million barrels a day lower than a year ago, down to a level last seen in 1995, the agency added in its latest monthly Oil Market Report, while demand in the second quarter of this year is expected to be 23.1 million barrels a day below year-ago levels.
U.S. crude oil prices fell below the $20 a barrel level in response, while Brent futures, the international benchmark, fell back below $30. At 4:20 AM ET (0820 GMT), U.S. crude futures traded 3.4% lower at $19.43 a barrel, while the Brent contract fell 5% to $28.12.
However, the 2020 low of $19.27 a barrel for WTI held, while Brent remains comfortably above its $21.65 low for the year.
The recovery in demand in the second half of 2020 will be gradual, the IEA said, with demand in December still down 2.7 million barrels a day from 2019 levels.