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The Low Oil Demand Expected for Next Year, According to IEA, Is Due to the Aviation Sector
The International Energy Agency (IEA) forecasts oil demand in 2021 to be much lower than in 2019 due to issues in the aviation sector, according to data published this Tuesday (16).
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According to the agency, initial forecasts for 2021 indicate that the IEA anticipates limited global demand growth of 5.7 million barrels per day (mbd) compared to 2020, a year marked by the Covid-19 pandemic.
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Total demand in 2021 would be 97.4 mbd, 2.4 mbd below the 2019 level, primarily due to weak aviation kerosene demand, the IEA notes in its monthly report.
“The aviation sector faces an existential crisis, and its demand for petroleum products will remain under pressure after this year, even as other fuels return to pre-Covid-19 levels”, states the document.
For this year, the IEA is somewhat less pessimistic about the pandemic’s effects, and although it maintains a forecast of a historic demand drop of 8.1 mbd, the projection represents almost 500,000 barrels a day more than the May estimate.
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