IEA: An improvement to oil market amid historical drop in oil production

Dhwani Mehta FXStreet

In its latest monthly oil market report, the International Energy Agency (IEA) cited an improvement to the oil market amid a historical drop in oil production.

Additional headlines

OECD oil industry stocks for march rose by 68.2 mln barrels to 2.961 bln, 46.7 mln barrels above the five-year average.

OECD oil industry stocks for march rose by 68.2 mln barrels to 2.961 bln, 46.7 mln barrels above the five-year average.

Predicts Q2 global refinery runs will fall 13.4 mln bpd y-o-y, with 2020 average throughput down 6.2 mln bpd.

Forecasts peak decline of global refining activity shifting from April to May.

US set to be single biggest contributor to global supply reductions by year end, down 2.8 mln bpd y-o-y

Non-OPEC+ April oil output 3 mln bpd lower than at start of year, led by US and Canada.

Global oil supply set to fall by 12 mln bpd in May to nine-year low of 88 mln bpd.

Estimates 2.8 bln people worldwide under some form of confinement by end of May, down from peak of 4 bln.

Decline in oil demand in H1 not as steep as first feared, revises up Chinese demand figures for march and April.

Oil demand set to fall 25.2 mln bpd in April y-o-y, by 21.5 mln bpd in May and by 13 mln bpd in June.

Trimmed its 2020 oil demand fall estimate by 690,000 bpd due to easing of lockdowns, greater mobility.

2020 global oil demand to set to fall 8.6 mln bpd, the biggest in history.

Market reaction

The rebound in oil prices picked up pace after IEA painted an improved outlook for global oil markets. WTI briefly regained the 26 mark while Brent oil tested 30.00

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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