The International Energy Agency (IEA) published on Tuesday its Oil Market Report for December, forecasting that the world oil demand will annually decline by 8.8 million barrels per day (bpd) in 2020. At the same time, the demand forecast for the next year was reduced down due to "another" downgrade for jet fuel and kerosene demand.
"The understandable euphoria around the start of vaccination programs partly explains higher prices but it will be several months before we reach a critical mass of vaccinated, economically active people and thus see an impact on oil demand. In the meantime, the end of the year holiday season will soon be upon us with the risk of another surge in Covid19 cases and the possibility of yet more confinement measures," the report noted.
The global oil supply increased by 1.5 million barrels per day in November to reach 92.7 million barrels per day, mainly due to the United States recovering from hurricanerelated production halts and increased output in Libyan facilities. Following the report, the prices of oil futures stood slightly in the red.
