Pump cranes are seen at the Midway Sunset, California oil field.
Lucy Nicholson | Reuters
The International Energy Agency (IEA) warned, Tuesday, that launching vaccines this month to combat the Coronavirus pandemic will not quickly reverse the devastation caused by global oil demand.
The International Energy Agency said in its monthly report: “The understandable euphoria around the start of vaccination programs partly explains the rise in prices, but it will take several months before we reach a critical mass of immune and economically active people, and thus see an impact on oil demand.”
“Meanwhile, we will soon face the end of the year holiday season with the risk of another increase in COVID-19 cases and the possibility of further confinement measures.”
The Paris-based agency lowered its estimate of oil demand this year by 50 thousand barrels per day and next year by 170 thousand barrels per day, noting the scarcity of use of jet fuel with the decrease in the number of air passengers.
Europe accounts for a large part of the crash, with demand set to decline in the fourth quarter compared to the third quarter due to renewed lockdown measures.
The International Energy Agency added that global oil stocks, which have soared as consumption faltered during the pandemic, will finally reach deficits compared to pre-crisis levels at the end of 2019 by July.
