IEA sees new European lockdowns denting global oil demand outlook

Oil prices have recovered from sharp falls earlier in the year to hover around $40 a barrel but demand fears persist.Major parts of the European continent are in lockdown which is pushing outlook for global oil demand toward the downside.
By : Reuters
| Updated on: 09 Nov 2020, 17:08 PM
File photo of oil pipes used for representational purpose (REUTERS)
File photo of oil pipes used for representational purpose (REUTERS)
File photo of oil pipes used for representational purpose (REUTERS)
File photo of oil pipes used for representational purpose

Renewed lockdown measures in Europe aimed at containing a rise in Covid-19 cases appear set to push the outlook for global oil demand toward the downside, an official with the International Energy Agency (IEA) said.

Keisuke Sadamori, IEA director for energy markets and security, told Reuters the impact would, however, likely be less severe than under lockdowns earlier in the year.

"Major parts of the European continent are in lockdown. This would surely work toward the negative side," he said in an interview, but stopped short of saying the group would formally lower its forecast.

Trending Cars

Find More Cars

"We certainly expect this time for there to be a lower impact than the last lockdown... This time schools are kept open and some of the stores are still open."

FOLLOW US:Stay Updated with latest content - Subscribe us on
FOLLOW US:Stay Updated with latest content - Subscribe us on

Oil prices have recovered from sharp falls earlier in the year to hover around $40 a barrel but demand fears persist, while markets remain on edge over a knife-edge U.S. election result which appears headed for legal challenges.

(Also read | Oil set for worst month since March as coronavirus revival cuts travel)

"The oil and gas industry, in the U.S. in particular, is looking at the outcome of this election with a huge amount of interest," Sadamori said.

"If the Democrats plan for radical energy low-carbon transformation -- if the Senate remains in the hands of Republicans, there will be obstacles to that legislation. Overall, we need to see the entire outcome."

The IEA kept its 2020 and 2021 oil demand forecast steady in its monthly report on Oct. 14, before major European countries including Germany, France and the United Kingdom imposed strict new curbs on movement to check the spread of the virus.

The Paris-based agency is set to publish its next analysis of the oil market on Thursday.

China remains the world's major bright spot after suppressing the virus earlier this year and is on track to be the only major country to boost its year-on-year demand for oil, Sadamori said.

Products demand presents a mixed picture, he added, with jet fuel and kerosene continuing to suffer but diesel, fuel oil and gasoline performing better.

First Published Date: 09 Nov 2020, 17:08 PM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city