Global oil demand to plunge by 29 million barrels per day

The International Energy Agency (IEA) has predicted that the global oil demand will decline by as much as 29 million barrels of crude oil per day in April 2020 due to the lockdown caused by the coronavirus pandemic.

In its monthly report, which was released on Wednesday, April 15, 2020, IEA stated that the decline is going to erode the efforts of the Organization of Petroleum Exporting Countries (OPEC) and its allies to contain the glut in crude oil supply globally.

According to the agency, even if the lockdown eases, a decade of demand growth will be wiped out this year when the average daily consumption of oil plunges by as much as 9 million barrels in 2020.

It could be recalled that OPEC and its allies had agreed to about 9.7 million barrels per day output cut over a 2-month period in order to help stabilize the oil market, which has been struggling with low demand, supply glut and an unprecedented crash in prices globally.