Thursday April 2, 2020
Home Business Global Oil De...

Global Oil Demand Expected to Decline in 2020 Due to Coronavirus: IEA

Coronavirus may shrink global oil demand

0
//
oil demand corona
Global oil demand is expected to decline in 2020 as the impact of the new coronavirus (COVID-19) spreads around the world. Pixabay

Global oil demand is expected to decline in 2020 as the impact of the new coronavirus (COVID-19) spreads around the world, constricting travel and broader economic activity, the International Energy Agency’s (IEA) oil market forecast said on Monday.

The situation remains fluid, creating an extraordinary degree of uncertainty over what the full global impact of the virus will be.

In the IEA’s central base case, demand this year drops for the first time since 2009 because of the deep contraction in oil consumption in China, and major disruptions to global travel and trade.

“The coronavirus crisis is affecting a wide range of energy markets, including coal, gas and renewables, but its impact on oil markets is particularly severe because it is stopping people and goods from moving around, dealing a heavy blow to demand for transport fuels,” said Fatih Birol, the IEA’s Executive Director.

oil demand corona
The coronavirus crisis is affecting a wide range of energy markets, including coal, gas and renewables, but its impact on oil demand is particularly severe. Pixabay

“This is especially true in China, the largest energy consumer in the world, which accounted for more than 80 per cent of global oil demand growth last year. While the repercussions of the virus are spreading to other parts of the world, what happens in China will have major implications for global energy and oil markets.”

The IEA now sees global oil demand at 99.9 million barrels a day in 2020, down around 90,000 barrels a day from 2019. This is a sharp downgrade from the IEA’s forecast in February, which predicted global oil demand would grow by 825,000 barrels a day in 2020.

The short-term outlook for the oil market will ultimately depend on how quickly governments move to contain the coronavirus outbreak, how successful their efforts are, and what lingering impact the global health crisis has on economic activity. To account for the extreme uncertainty facing energy markets, the IEA has developed two other scenarios for how global oil demand could evolve this year.

Also Read- Google to Discontinue John Legend’s Assistant Voice

In a more pessimistic low case, global measures fail to contain the virus, and global demand falls by 730,000 barrels a day in 2020.

In a more optimistic high case, the virus is contained quickly around the world, and global demand grows by 480,000 barrels a day. (IANS)

Next Story

Facebook Announces To Expand Community Help Feature

This is the first time Facebook has launched Community Help on a global scale and being used for a health pandemic

0
Facebook
This is the first time Facebook has launched Community Help on a global scale and being used for a health pandemic. VOA

Facebook has announced to expand its Community Help feature as part of COVID-19 efforts which will help people offer help to those affected by the new coronavirus pandemic, as well as donate to nonprofit organisations.

People can access Community Help in the COVID-19 Information Center on Facebook.

“Community Help is a place for people to request or offer help to neighbours, such as volunteering to deliver groceries or donating to a local food pantry or fundraiser,” Facebook said in statement late Tuesday.

Please Follow NewsGram on Twitter To Get Latest Updates From Around The World!

The social networking giant is starting to roll it out in the US, the UK, France, Australia and Canada in the next few days.

Facebook
Facebook has announced to expand its Community Help feature as part of COVID-19 efforts which will help people offer help to those affected by the new coronavirus pandemic, as well as donate to nonprofit organisations. Pixabay

“We’re working to bring it to more countries in the coming weeks,” said the company.

This is the first time Facebook has launched Community Help on a global scale and being used for a health pandemic.

ALSO READ: Tesla To Supply FDA-Approved Ventilators Free of Cost To Hospitals: Elon Musk

The new coronavirus cases reached over 8.5 lakh globally on Wednesday, with over 42,000 deaths. The cases in US reached 1.8 lakh alone, according to Johns Hopkins Coronavirus Resource Center. (IANS)