The global coronavirus crisis has already brought the growth of oil demand to a 10-year low, and could drive it lower still, the International Energy Agency reported yesterday.
“We certainly see the lowest oil demand growth in the last 10 years and we may need to revise it…downwards,” Executive Director Fatih Birol told Reuters yesterday, during the International Petroleum Week conference in London, UK.
“The comments from the head of the Paris-based agency come a day after oil prices plunged by more than 4% as the coronavirus spread outside Asia, threatening global economic growth and raising fears of additional loss of oil demand growth,” Oilprice.com writes. While the annual fossil event in London went ahead as planned, “many participants have cancelled receptions and events at the conference due to the outbreak,” and “major international oil traders and refiners have canceled networking events.”
The Organization of Petroleum Exporting Countries (OPEC) “also slashed its global oil demand growth forecast for 2020, expecting the coronavirus outbreak to weigh heavily on fuel demand in the world’s oil demand growth driver, China,” Oilprice adds. The U.S. Energy Information Administration has cut its forecast, as well.