As reported today by the International energy Agency (IEA), world demand for oil will drop this month at 29 million barrels to a level that was last observed in 1995 at 70.4 million barrels per day.
a Gradual recovery in demand is likely to begin in June, although it will still be 15 million barrels lower than a year earlier. In General, according to the IEA, demand in the second quarter will be lower at 23.1 million barrels per day than a year earlier, and overall, by 2020 the expected decline in global demand at 9.3 million barrels per day to 90.5 million barrels a day.
a new report by the IEA on oil market (OMR), said that the deal agreed at the weekend by a group of OPEC+, will help to reduce production to 12 million barrels per day. In addition, the expected decline in production by 3.5 million barrels per day "in the coming months" because of low prices, this is likely to hurt the United States and Canada in which the production cost of a barrel of oil exceeds $ 40.
In any case, the IEA predicts that a decrease in supply causes the market becomes scarce during the second half of 2020, "ensuring the cessation of growth stocks and a return to more normal market conditions."
"Never before has the oil industry been so close to testing its logistical capabilities to the limit," - said in a statement.
the report notes that "the measures announced by the OPEC and the countries "Big twenty" will not lead to equilibrium market immediately... but, lowering peak oversupply and smoothing the curve of growth stocks, they will help a complex system to absorb the worst of this crisis, whose consequences for the oil market remains highly uncertain in the short term."
