Around the world, billions of people are facing the worst health crises of the past century. Consequently, the global economy is under pressure in ways not seen in past decades.
The fall of large businesses and the transportation sector, also high unemployment rates, have negatively impacted the world. Similarly, the coronavirus pandemic will affect global growth and oil demand this year. Still, according to the International Energy Agency, it is expected that global oil demand in 2020 will fall by 9.3 million barrels a day (Mb/d) compared to 2019.
Wide range of energy markets
A wide range of energy markets, such as coal, gas, and renewables, are affected by this pandemic. But its impact on oil markets is particularly severe because of travel restrictions, dealing a heavy blow to demand for transport fuels. The IEA has estimated that the global oil demand is at 99.9 million barrels per day in 2020, and it's a fall of 90,000 barrels per day compared to last year. This is a sharp demotion from what they predicted in February this year, which stated global oil demand would grow by 825,000 barrels a day in 2020.
The future demands of the oil market
Ultimately, the future demands of the oil market depend on how quickly the countries move to resolve the coronavirus outbreak. But as EIA assumes all travel restriction orders will be eased by the end of 2020. However, any lasting changes to transportation and other oil consumption patterns until COVID-19 mitigation efforts end shows a considerable uncertainty to the increase in liquid fuels consumption. Moreover, IEA predicts that The world's oil demand could climb at its fastest rate in the market's history next year. And it may reach pre-crisis levels within years if governments avoid a second wave of the coronavirus outbreak and restart the aviation industry, without putting in place new plans to accelerate clean energy investment.