IEA sees COVID blow to oil demand in 2021, surplus in 2022

The International Energy Agency’s latest report says that global oil demand growth ‘abruptly reversed course in July’ due to the worsening coronavirus pandemic.

The outlook for global oil markets darkened on Thursday after the International Energy Agency (IEA) said that slowing demand for crude in the wake of restrictions imposed to curb the fast-spreading Delta variant is colliding with a recent increase in global crude production. But the news is likely to be welcomed by the White House, which on Wednesday prodded the Organization of the Petroleum Exporting Countries (OPEC) to open the oil taps further, which would help lower petrol prices in the United States during the height of the summer driving season. The IEA’s latest oil market report said that global oil demand “abruptly reversed course in July, and the outlook for the remainder of 2021 has been downgraded due to the worsening progression of the [coronavirus] pandemic and revisions to historical data”.