Oil demand growth dampened significantly in July. In the rest of the year, black gold is set to go for sales slightly worse than originally thought. A rapidly spreading variant of the coronavirus, which is referred to as delta, may be responsible.
Oil demand growth will slow significantly in the second half of the year as new restrictions are introduced due to the proliferation of coronavirus in major countries in terms of consumption of this commodity. And especially in Asia. Such is the current outlook for black gold demand, published by the International Energy Agency (IEA).
Oil demand will rise by just half a million barrels per day, according to the agency, while until a month ago it estimated it would be up to a million barrels. The IEA also anticipates that the market will stabilise in the rest of the year after the OPEC+ group of countries agreed on a timetable for increasing mining.
That could eventually also lead to a glut of oil on the global market over the next year. Then it would depend how the OPEC+ group would approach the situation and whether it would again proceed to restrict black gold mining. “The mining industry is looking for a new businessmodel to help the entire energy sector transform,” the International Energy Agency added.
