OREANDA-NEWS. The demand for oil in the world in 2020 will decrease due to the spread of coronavirus infection by a record 9.3 million barrels per day. In April, demand will decline by 29 million barrels per day - to the lowest level since 1995, according to an April report by the International Energy Agency (IEA).

“In the second quarter of 2020, demand is expected to be 23.1 million barrels per day below last year's levels. The recovery in oil demand in the second half of the year will be smooth, in December it will still be 2.7 million barrels per day below the level of the year earlier", noted in the document.

The decline in oil production in exporting countries that are not members of the OPEC + alliance may reach 3.5 million barrels per day in the coming months, and, together with the OPEC+ agreement, a general decrease in world production may lead to supply shortages in the second half of 2020 follows from the report.

"A general decrease in supply volumes, taking into account reductions in OPEC+, will put the market in a deficit state in the second half of 2020, which will finally put an end to the growth of stocks in storage and will allow the market to return to normal conditions", the document says.