IEA Revises Oil Demand Outlook Amid Worsening Spread of Delta Variant

What appeared to be a strong recovery in the demand for crude oil suddenly reversed course in July, as the spreading Covid-19 delta variant threatens to derail robust consumption and mobility.

The International Energy Agency sharply downgraded its global oil demand forecast for the remainder of the year on Thursday, as a resurgence of the pandemic hits major crude-consuming economies. The agency said that demand slumped by 120,000 barrels per day last month, and is now anticipating consumption to decline by around 550,000 barrels per day in the second half of 2021.

Just a month ago, the Paris-based agency urged OPEC+ to boost output in an effort to curb the rising costs of fuel, to which the oil cartel obliged. However, the increase in output is now arriving just as consumption begins to slacken.

The IEA’s latest forecast also contradicts a call from the White House to OPEC and its members to further accelerate output in wake of rising fuel prices across the US. “The immediate boost from OPEC+ is colliding with slower demand growth and higher output from outside the alliance, stamping out lingering suggestions of a near-term supply crunch or super cycle,” explained the agency.

Since the beginning of August, oil prices have fallen by more than 5%, as the rapid spread of the delta variant spurs new lockdowns in China and other Asian regions. The “recent rally has lost steam on concerns that a surge in COVID-19 cases from the Delta variant could derail the recovery just as more barrels hit the market,” the IEA said.


Information for this briefing was found via the IEA. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Global CO2 Emissions Expected to Surge Amid Covid-19 Economic Recovery

The global economy is set to record the second-highest increase in carbon emissions this year,...

Thursday, April 22, 2021, 04:09:00 PM

IEA: Global Crude Demand Will Never Reach Pre-Pandemic Growth

The global demand for oil is not expected to reach pre-pandemic levels until at least...

Thursday, March 18, 2021, 02:41:00 PM

Copper Shortage Threatens to Derail Global Clean Energy Plans

A critical copper supply shortage threatens to leave global markets facing a substantial deficit by...

Monday, July 28, 2025, 03:42:00 PM

Gasoline Demand Across The US Crumbles As Summer Driving Season Comes End

As the summer driving season in the US comes to an end, the demand for...

Monday, September 14, 2020, 02:16:45 PM

Oil Prices Continue to Slide As Supply Outstrips Demand

Oil prices continue to trade like a falling knife. Prices fell more than 10% in...

Sunday, March 19, 2023, 01:54:00 PM