Thread by @IEABirol

With a combination of a massive supply overhang and a significant demand shock at the same time, the situation we are witnessing today seems to have no equal in oil market history.

#THREAD

We just released @IEA’s updated forecast for global oil demand in 2020, revising it down by about 1 million barrels a day due to the impact of the coronavirus.

We expect to see the 1st full-year decline in demand in over a decade.

Our press release: iea.li/2TC2ibH

We @IEA are following the #COVID19 crisis very closely & will provide regular updates as the picture becomes clearer.

It's affecting a range of energy markets – including coal, gas & renewables – but its impact on oil is especially severe due to the effect on transport.

The biggest drop in oil demand so far this year has come in China, the world's largest energy consumer & the main driver of global oil demand growth in 2019.

#COVID19's impact is spreading elsewhere, but what happens in China will have a major effect on global energy markets.

The impact of the coronavirus on oil markets may be temporary. But the longer-term challenges facing producer countries are not going to go away, especially those heavily dependent on oil & gas revenues.

More on this in our medium-term report: iea.li/2TMX6R6

In some major producer economies, sustained low prices could make it almost impossible to fund essential areas such as education, health care & public sector employment.

Diversification becomes simultaneously more important & more difficult due to lack of funds to achieve it.

The #COVID19 crisis is adding to uncertainty for the oil industry as it considers new strategies & investments.

Companies need to show they can deliver not just energy to fuel economies but also emissions reductions to help meet climate goals.

More here: iea.li/2TMXEXa