Oil demand to face historic drop in 2020

According to data from the International Energy Agency (IEA) starting this year, oil demand will suffer a historic drop. Agency figures show that it will be -9.3 million barrels per day (mbd), given the shutdown of the global economy caused by the COVID-19 pandemic.

Thus, world consumption will be equivalent to that of 2012, at 90.6 mbd. In April alone, the IEA forecasts a drop of 29 million barrels per day compared to 2019. If the pace continues, consumption is expected to fall another 26 mbd in May and 15 mbd in June this year.

However, a small recovery is planned for the second half of the year, according to the agency. This is because unprecedented measures will be taken to contain the pandemic and support the economy, but the return to normal demand will be progressive.