The Energy Agency warns: the decline in the oil market is more than offset by the reduction in production

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The Energy Agency warns: the decline in the oil market is more than offset by the reduction in production

Reuters

The Energy Agency warns: the decline in the oil market is more than offset by the reduction in production

The International Energy Agency predicted today, Wednesday, that the global demand for oil will decrease by 29 million barrels per day on an annual basis in April, to record levels not seen in 25 years.

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The agency warned that reducing production by two producers would not fully offset market demand losses in the near term.

The agency expected oil demand to decrease in 2020 by 9.3 million barrels per day, despite what it described as a strong start by producers after a record supply cut agreement in response to the Corona virus.

Fatih Birol, CEO of the International Energy Agency, said that this month may be the worst month on record for the oil industry.

He added that the extreme volatility in the global oil markets is dangerous for the global economy.

The group of “OPEC +” countries had recently agreed to reduce production by about 10 million barrels per day in May and June of 2020, with the cuts to be gradually reduced in the second half of this year until April 2022.

The agreement aims to support oil markets in light of the decline in demand for crude due to the spread of the Corona virus in the world.

Source: “Reuters”





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