A resurgence of coronavirus cases will have ‘major consequences’ for the oil market, IEA warns

• In its closely-watched monthly report, the IEA’s outlook for oil demand showed a fall of 8.6 million barrels per day (b/d) to 91.2 million b/d this year. That’s 0.7 million b/d more than the group anticipated in its previous report.
• The IEA stressed a resurgence of Covid-19 cases would constitute a “major risk factor” to oil demand.
• On the supply side, it expected a “spectacular” fall of 12 million b/d this month, falling to a nine-year low of 88 million b/d.

The International Energy Agency (IEA) said on Thursday that market forces had “demonstrated their power” on the supply side of the oil market in recent weeks, but concerns remain over the potential for a second wave of Covid-19 infections.

Last updated on Thu., May 14, 2020.