Commodities

Demand for crude oil likely to bounce back, says IEA chief

Our Bureau, Chennai | Updated on July 06, 2020 Published on July 06, 2020

Fatih Birol, Executive Director IEA MANDEL NGAN

Dr Fatih Birol, Executive Director, International Energy Agency, today said that the global demand for crude oil might touch 100 million barrels/ day, or even more.

At a virtual press conference today, Dr Birol observed that if global economic recovery was strong and if governments did nothing to replace oil demand with other energy sources, “I wouldn’t be surprised if the global demand for oil goes back to 100 mb/d or even higher than that.” 

In its oil market report of June, IEA had noted that “due to stronger than expected deliveries during the Covid-19 lockdown” and put the global oil demand at 91.7 mb/d. It also stated that oil demand rose fast in March and April in China, and in India in May.

Dr Birol said that many CEOs of oil companies, commentators and thought-leaders felt that oil demand might have peaked because of changes in lifestyles, but “I’m not sure about it.”

The press conference was held to announce the holding of the IEA Clean Energy Transitions Summit on July 9, virtually. The gathering will discuss measures to boost economies, create jobs, reduce global emissions and make energy systems more resilient.

Ministers in attendance will represent almost 80 per cent of global energy consumption and carbon emissions, making the Summit the highest-profile energy and climate discussion since the start of the Covid-19 pandemic. They will include representatives of the world’s largest energy users: Minister Zhang Jianhua of China, Secretary Dan Brouillette of the United States, Minister R.K. Singh of India, Executive Vice-President Frans Timmermans of the European Commission, and Minister Kajiyama Hiroshi of Japan.

Among the high-level participants will be António Guterres, Secretary-General of the United Nations, and Alok Sharma, Secretary of State of the United Kingdom and President of the upcoming COP26, as well as Ministers representing the countries that held the past two COP meetings. They will be joined by the President of the Asian Development Bank, the President of the World Economic Forum (Davos), CEOs from across the energy sector, major investors, and representatives from civil society.

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Published on July 06, 2020
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