IEA: The outlook for global oil markets has ‘improved somewhat’

IEA with their latest report on the oil market

  • Demand is seen a little stronger-than-expected
  • Demand forecast pushed up by 700k bpd
  • But still remains on track for a plunge of 8.6 mil bpd (roughly 9%)
  • Oil production is on track for a ‘historic decline’ this month – lowest level in 9 years
  • This owes to OPEC+ and other international producers slashing output
  • Oil market is still in a very difficult position
A very minor lift in the oil outlook but make no mistake, the overall conditions in the market remains highly subdued considering the supply and demand imbalance caused by the coronavirus pandemic across the globe. IEA is quick to warn about that as well:

“.. but major uncertainties remain. It is unclear whether governments can resume economic activity without causing renewed outbreaks of the pandemic, and how far the OPEC+ alliance will implement the promised supply curbs.”