-The coronavirus pandemic will hammer global growth and oil demand this year but supply cuts from producers and a record rebound in demand in next year will help rebalance the oil market, the International Energy Agency said Tuesday.
In its closely observed monthly oil market report, the IEA said that while the world's demand for crude will drop by 8.1 million barrels a day this year--slightly less than forecast in last month's report--demand in 2021 will bounce back by a record-breaking 5.7 million barrels a day.
The emergence in recent weeks of parts of the global economy from coronavirus lockdowns has spurred a recovery in crude demand. Chinese oil demand in April was almost back at levels seen a year previously and Indian demand climbed in May.
If that resurgence persists, and oil-producing nations stick to their plans to constrict global oil supply, "the market will be on a more stable footing by the end of the second half [of 2020]," the IEA said in its report.
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