On Tuesday, The International Energy Agency (EIA) revealed that it cut its 2020 global oil demand forecast by 200 thousand to 91.7 million barrels per day (bpd). Compared to 2019, the agency sees global oil demand declining by 8.4 million bpd. However, the forecast for 2021 remained unchanged at 97.1 million bpd, same as previous forecast.
The IEA stated that it revised down its demand foresees for the last 2 quarters of 2020 as a result of the rising of the COVID-19.
Besides, non-OPEC supply is seen as declining by 2.6 million bpd this year after production in the U.S. was dropped by 400 thousand bpd in August due to Hurricane Laura.
Meanwhile, the demand in China is showing a strong recovery, but in India, the demand remains weak.
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