Opec and the IEA this week poured cold water on oil markets as they again revised down their expectations for 2021 global oil demand. Market sentiment has grown increasingly optimistic in recent days as Brent pushed past $50/B, Covid-vaccinations were being rolled out and Asian buying strengthened. However, while acknowledging the “understandable euphoria” the IEA warned of the “risk of another surge in Covid-19 cases and the possibility of yet more confinement measures” in the short-term.
The two organizations released their monthly oil market reports for December this week and continued the recent trend of demand downgrades. Both revised downwards their estimates for global oil demand in Q4 by approximately 200,000 b/d from the previous reports (see tables). They also revised downwards estimates for 2021 demand, with the IEA cutting its projection by 170,000 b/d and Opec cutting its figure by 370,000 b/d. (CONTINUED - 810 WORDS)
