In its latest oil market monthly report, the International Energy Agency (IEA) revised down its 2020 global oil demand forecast, in the face of deteriorating air travel outlook amid coronavirus crisis.
Additional takeaways
Global oil supply set to fall 7.1m bpd in 2020.
Global oil supply forecast to rise 1.6m bpd in 2021.
Oecd industry stocks rose by 16.2 mln barrels to 3.235 bln barrels in June, 286.7 mln barrels above five-year average.
2020 global refining throughput in q2 declined by 11.5 mln bpd y/y to the lowest quarterly level in 17 years.
Oil demand exceeded supply in June and there is an implied stock draw for the rest of the year.
Compensation for earlier OPEc+ over-production could keep world supply steady in August.
Global oil supply rose by 2.5 mln bpd in july to 90 mln bpd.
Upsurge in covid-19 cases has prompted downgrade of h2 demand estimate for gasoline.
It remains unclear if new covid-19 cases herald second wave or simply a regular fluctuation.
Data show aviation kilometres travelled nearly 80% down y/y in April and still down 67% y/y in July.
Revises down 2021 crude oil demand estimate by 240,000 bpd to 97.1 mln bpd.
Predicts decline of 2020 global oil demand of 8.1 million bpd, mostly due to poor jet fuel demand.
WTI stays flat below $43
Despite the downbeat oil demand outlook, WTI jumped back to test the daily highs of $42.90 reached in early Asia. The black gold remains below the $43 mark amid the cautious market mood.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.