The International Energy Agency (IEA) revised down its oil demand growth outlook for 2020 on concerns over the persistent impact of the COVID-19 pandemic and renewed oil demand weakness, especially in China and India. The agency now expects global oil demand to contract by 8.4 million bpd, a downward adjustment of 300,000 bpd from its previous projection. According to IEA, oil demand has returned to its 2013 level at 91.7 million bpd.
IEA said China’s crude imports, which boosted the market since April, decelerated sharply for September and October deliveries. In August, India saw the steepest month-on-month decline in oil demand since April as COVID-19 cases continued to increase with no signs of peaking.
IEA said that the relaxation in OPEC+ oil production cut deal pushed global supply to recover to 1.1 million bpd in August. However, the recovery in countries outside the alliance stalled last month. US crude oil production fell 400,000 bpd mostly due to Hurricane Laura. Non-OPEC production is expected to drop by 2.6 million bpd this year before modestly rebounding by 0.5 million bpd next year.
