Keisuke Sadamori, an official with the International Energy Agency (IEA), said that renewed lockdowns in Europe would dent oil demand further. However, Sadamori noted that the impact of the reimposed lockdowns would be less severe compared to similar measures earlier this year because under the current restrictions school and some stores are allowed to open.
Oil prices have recovered to around $40/barrel, but demand concerns persist. The IEA maintained its 2020 and 2021 oil demand forecast steady in its October report which was released before Germany, France, and the UK started new restrictions to keep the COVID-19 outbreak in check. The Paris-based agency is due to release its latest report on Thursday.
Sadamori added China would remain an outlier in the oil market. The world’s second-largest economy is on track to be the only market to report positive year-on-year growth in oil demand. Product demand showed mixed signals, he added, with diesel, gasoline, and fuel oil performing better, while jet fuel and kerosene continued to suffer.
