IEA Raises 2020 Oil Demand Forecast

Yesterday, WTI crude tracked with US equities to finish the session higher.  Prices continue to advance in early trading this morning based upon better OPEC+ compliance by cartel members with record production cuts. The International Energy Agency (IEA) increasing demand forecasts for 2020 is also moving markets today.

In its monthly report, the IEA forecast oil demand at 91.7 MMbpd in 2020, citing higher than expected consumption during the lockdowns.  The forecast is 500 kbpd higher than its estimate in May’s report. However, the agency cautioned that a fall in airplane travel due to the coronavirus means the world will not return to pre-pandemic demand levels before 2022.

The IEA said OPEC+ reduced its May output by 9.4 MMbpd, and overall oil supplies plunged by nearly 12 MMbpd in May.  Iraq historically has one of the worst compliance rates among cartel members but has already made deep cuts to crude supplies for July.

In early trading today, crude prices are up. Crude is currently trading at $38.50, a gain of $1.38.

Fuel prices are up this morning. Diesel is trading at $1.1758, a gain of 3.9 cents.  Gasoline is trading at $1.2072, an increase of 4.2 cents.

Market Condition Report - Disclaimer
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

Sign up for FUELSNews for daily market information and insights
Sign Me Up
Give Us a Call Today

We are happy to discuss your business challenges over the phone and answer any questions.


Send Us an Email

Ask your toughest questions. We'll get back to you with the best answer humanly possible.

Send Email

Find a Mansfield Location

Need to contact a specfic office? View contact information for offices across the country.

View Locations

Get a Quote Today

Let us know what type of fuel or service you need and a team member will get a quote to you quickly.

Get a Quote