According to the International Energy Agency, the situation in Corona, especially in India, has reduced global oil demand.
The International Energy Agency (IAEA) said on Wednesday that global oil demand had fallen in the past month as the outbreak of the coronavirus spread to India and other countries, Reuters reported.
The agency noted that global oil demand in April fell by 130,000 barrels compared to March and is still low compared to the end of last year.
The report of the International Energy Agency states: “The state of improving global oil demand is fragile, as rising cases of Covid 19 in countries such as India and Thailand offset the more recent positive trend in Europe and the United States.”
On Monday, the World Health Organization described the mutated strain of the coronavirus in India as a “global concern” due to its faster spread.
However, the International Energy Agency says in its monthly report that the agency’s outlook for a rapid increase in energy demand in the second half of this year remains unchanged, as it believes that expanding vaccination programs will make the burden heavier.
The agency predicts that global oil demand will reach 99.6 million barrels per day in the fourth quarter of this year, which is not far from the 100.6 million barrels per day consumed in the last quarter of 2019.
But the International Energy Agency does not anticipate that supply could increase as much as demand, as OPEC Plus producers do not fully increase production.
The group recently went through ups and downs in its decisions on oil production, and the International Energy Agency says, “If the group continues on its current path, the demand gap for its production could reach 2.5 million by the end of this year.”
The agency’s report adds: “Even if Iran reaches an agreement to reduce sanctions, there will still be a gap of 1.7 million barrels per day.”