Oil demand to fall at largest-ever rate in 2020: IEA

Oil demand is set to fall by 8.1 million barrels per day (mbpd) in 2020, the largest decline in history, before recovering next year, the International Energy Agency (IEA) said on Tuesday.

In its latest oil market report, the Paris-headquartered agency increased oil demand estimate by nearly 500,000 barrels per day (bpd) to 91.7 mbpd for 2020, due to stronger than expected deliveries during the COVID-19 lockdown.

Oil demand is expected to grow 5.7 mbpd in 2021, but will be short of 2019 level.

Furthermore, IEA said that the market would be on a more stable footing by the end of the second half of 2020 if the recent trends in production are maintained and demand recovers, warning not to underestimate the enormous uncertainties.