Coronavirus outbreak sparks cutback in 2020 oil demand predictions
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The Energy Information Administration is trimming its 2020 oil demand forecast by 300,000 barrels per day, citing the effects of the novel coronavirus outbreak.
Why it matters: It's the latest sign of how the outbreak is changing oil market forecasts and creating headwinds for a sector already struggling with middling prices.
- "EIA expects these oil consumption effects will be concentrated in China but some effects will show up in other countries as well," the agency said.
- EIA's latest monthly analysis, out yesterday, now expects demand growth of 1 million barrels per day this year.
The intrigue: A range of estimates are emerging for how the outbreak could affect global oil consumption.
- The consultancy Rystad Energy yesterday reduced their global demand growth forecast 25% to 820,000 barrels per day, but said it could fall as low as 650,000.
What's next: Tomorrow, the International Energy Agency will release its closely watched monthly market analysis.