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Oil Turns Lower As IEA Lowers 2020 Oil Demand Forecast

Oil prices turned lower on Thursday after the International Energy Agency (IEA) cut its forecast for global oil demand for the whole of 2020 to 91.9 million barrels per day, saying the Covid-19 pandemic has cast a long shadow over oil demand.

Benchmark Brent crude eased 0.3 percent to $45.30 a barrel, after having gained around 2 percent in the previous session on U.S. government data showing a fall in inventories.

West Texas Intermediate crude futures were also down 0.3 percent at $42.55 a barrel after gaining 2.6 percent in the previous session.

The IEA said in its latest monthly report that it expects demand to fall by 8.1 million barrels per day year-on-year in 2020.

The aviation and transport sectors, in particular, are struggling with the fallout from the lockdowns aimed at reining in the disease, the IEA said and added that it expect demand to recover somewhat next year to 97.1 million bpd.

OPEC forecast in a monthly report on Wednesday that world oil demand will likely tumble by 9.06 million barrels per day (bpd) this year, more than the 8.95 million bpd decline expected a month ago.

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