EIA raises 2020 global oil demand outlook

London, Aug 11 (HNA) – The United States Energy Information Administration (EIA) said in its Short-Term Energy Outlook (STEO) released on Tuesday that it raised its global oil demand forecast for 2020 by 7 million barrels per day (bpd).

The EIA noted it now expects global demand to average 93.1 million bpd in 2020, which would mark an 8.1 million bpd drop compared to 2019. The agency also noted it lowered its production forecast for 2020 by 370,000 bpd and said it now expects crude output to average 11.3 billion.

“The August STEO remains subject to heightened levels of uncertainty because mitigation and reopening efforts related to COVID-19 continue to evolve. Reduced economic activity related to the COVID-19 pandemic has caused changes in energy demand and supply patterns in 2020,” the EIA stressed.

The August Short-Term Energy Outlook (STEO) remains subject to heightened levels of uncertainty because mitigation and reopening efforts related to the 2019 novel coronavirus disease (Covid-19) continue to evolve.

Reduced economic activity related to the Covid-19 pandemic has caused changes in energy demand and supply patterns in 2020. Uncertainties persist across the U.S. Energy Information Administration’s (EIA) outlook for all energy sources, including liquid fuels, natural gas, electricity, coal, and renewables.

The STEO is based on U.S. macroeconomic forecasts by IHS Markit, which assumes U.S. gross domestic product declined by 5.2% in the first half of 2020 from the same period a year ago and will rise from the third quarter of 2020 through 2021.