ECONOMY


IEA warns oil demand recovery at risk from virus resurgence

Baku, July 10, AZERTAC

The International Energy Agency bolstered its outlook for global oil demand, but warned that the recovery could be derailed by the resurgence of coronavirus, according to Bloomberg.

A collapse in fuel consumption during the second quarter was slightly less severe than previously estimated, and demand should rebound sharply over the next three months as economic activity resumes, the agency said in a monthly report. Bloated inventories will diminish as OPEC and its allies persevere with vast production cuts, it predicted.

Yet a flare-up of the virus, which is raging across several U.S. states and re-emerging in Asia, is “casting a shadow over the outlook,” the IEA cautioned. Oil fell 1.4% to $39.06 a barrel at 7:20 a.m. in New York, heading for a weekly loss.

“The large, and in some countries, accelerating number of Covid-19 cases is a disturbing reminder that the pandemic is not under control and the risk to our market outlook is almost certainly to the downside,” the IEA said. The Paris-based agency advises major economies on energy policy.

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