The oil industry keeps pumping out gloomy forecasts due to the pandemic’s pummeling of the global economy. The watchdog International Energy Agency warned Tuesday it is lowering its forecast for global oil demand in 2020 by 200,000 barrels a day.
That follows Monday’s move by OPEC to cut its outlook this year by 400,000 barrels. Also that day, energy giant BP projected that oil consumption peaked for good last year and sees the coronavirus slashing oil demand by about 3 million barrels per day by 2025.
After COVID-19 hammered fuel demand in the spring, consumption rebounded in the summer. But now, a resurgence of the deadly virus in some countries is sparking lockdowns that could hamper the recovery.
Crude now trades at under $40 due to the weak rebound in demand.
Amid the gloomy forecasts, one energy trading firm sees a silver lining. Vitol CEO Russell Hardy said that with the exception of jet fuel, oil demand in transportation sectors could bounce back to pre-pandemic levels by the end of next year.