IEA cuts oil demand outlook on coronavirus, sees surplus in 2022
The International Energy Agency cut forecasts for global oil demand “sharply” for the rest of this year as the resurgent pandemic hits major consumers, and predicted a new surplus in 2022.
It’s a marked reversal for the Paris-based agency, which just a month ago was urging the Opec+ alliance to open the taps or risk a damaging spike in prices. The oil cartel heeded calls to hike supply, which is now arriving just as consumption slackens.
The analysis also jars with Wednesday’s call from the US — the IEA’s most influential member — for the Organization of Petroleum Exporting Countries and its allies to ramp production up faster.
