IEA Anticipates the Biggest Ever Drop in World Oil Demand

The International Energy Agency (IEA) estimates world oil demand to drop by 9.3 barrels per day, in 2020, primarily considering the economic disruption caused by the Coronavirus. April 2020 has been identified as the month likely to be worst affected. The IEA has termed it as ‘Black April’ for the energy market, where oil demand is projected to fall to its lowest since 1995.

Crude oil prices have fallen by over 60 percent since the beginning of 2020. Prices were already on a downward trend before the pandemic escalated, driven by a pricing war between Saudi Arabia and Russia. Halt in economic activity resulting from lockdowns enforced by multiple countries to contain to the Coronavirus, has exacerbated the n...