The International Energy Agency (IEA) in its monthly brief, report that mobility still remains limited for many citizens, businesses are starting to reopen gradually and people are returning to work, which will provide a boost to oil demand.
A gradual
relaxation of restrictions on movement after COVID-19 lockdowns has seen the
early signs of gradual rebalancing of global oil markets.
The International
Energy Agency (IEA) in its monthly brief, report that mobility still remains
limited for many citizens, businesses are starting to reopen gradually and
people are returning to work, which will provide a boost to oil demand. IEA's Chief Energy
Modeller, Laura Cozzi says the cut in energy use during the COVID-19 lockdown
is really unprecedented.
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What is being witnessed
according to Laura Cozzi is bigger than what was witnessed during the 2008/9
global financial crisis and the previous oil shocks in the ’70s. She says by the
end of April, there was a contraction of global energy use by almost three per cent.
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The transport sector
was equally hit hard
The International
Energy Agency predicts that the gradual relaxation of restrictions on movement
is helping demand. It estimates that
from a recent peak of 4 billion, the number of people living under some form of
confinement at the end of May will drop to about 2.8 billion worldwide.
The Agency notes
that while mobility still remains limited for many citizens, businesses are
starting to reopen gradually and people are returning to work, which will
provide a boost to oil demand, though a modest percentage at first.
Countries like
Uganda are hoping for a rebound in global oil prices especially as the country prepares
for the next round of oil fields bids and as oil companies prepare for the
Final Investments Decision(FID)
