Global demand for oil falls first time in 10 years due to coronavirus

It is expected that the outbreak of the coronavirus will lead to a fall in world oil demand during the first three months of 2020, the first quarterly drop in the last 10 years.

In the report of the International energy Agency, demand for crude oil published on Thursday, is projected to fall by approximately 435,000 barrels per day for the period from January to March — or about half of 1 percent — compared with a quarter in 2019.

The Agency painted a gloomy picture of the Chinese economy and wider influence of the coronavirus in energy consumption.

According to their calculations, in the early stages of an emergency, domestic air travel in China fell by 50 per cent and international air travel fell by 70 percent. The total demand of China fell by about 460,000 barrels per day during the first three months.

These changes that occurred after the rapid increase of China’s needs in energy for such activities as air transport and driving, are of paramount importance for the international oil markets and China.

China accounted for three-quarters of the growth in global demand for oil last year. In the country, which last year accounted for about 14 percent of global oil demand, prices fell from nearly $ 70 per barrel in early January to around $ 55 per barrel Brent oil, the international standard.

But the Agency said it is optimistic about the recovery operation mode in China. Assuming that the “epidemic can be brought under control” in the second quarter of this year, the economy is gradually “return to normal”, the statement said.