The International Energy Agency (IEA) has altered its oil market forecast in light of the impact of coronavirus. The latest IEA Oil Market Report indicates that current global oil demands are sharply diminishing compared to this time a year ago. Where it was predicting an 825,000-barrel increase in daily demand, it is now expected that demand will be one million barrels less per day in 2020 than in 2019. If global measures fail to contain the virus, the IEA predicts that global oil demands will continue to be lower throughout the year. By December, demand could reach around 730,000 barrels less per day than in winter 2019, the Agency has found. However, the IEA declared that the coronavirus context could be a push for fossil fuel firms to transition in line with the Paris Agreement. The study outlines how oil demand will “rebound sharply” in 2021, as the coronavirus outbreak comes to an end, but will then slow through to 2025 due to global efforts toward the net-zero transition. (Edie)

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