IEA sees oil demand taking years to recover from the coronavirus crisis

IEA remarks on the oil market

  • Oil demand to fall by 8% this year
  • Global oil consumption will only return to pre-crisis levels in 2023
  • That is provided the coronavirus is brought under control next year
  • Global oil demand will plateau around 2030 at best
  • But that will be at lower levels than forecast last year
  • If the coronavirus impact is more severe, global oil consumption won’t recover to pre-crisis levels until ‘the latter part of the 2020s’

Just painting some colour to the oil market picture in the longer-term. The narrative that the IEA sees playing out i.e. global oil demand topping out in the next decade largely hinges on the switch to more efficient energy such as electric vehicles.

As for their projections of demand/consumption, a lot still depends on how the virus crisis develops and we’ll have to go through that day-by-day.