The International Energy Agency said that the consequences of the coronavirus outbreak for oil demand “will be significant,” in a Feb. 13, 2020 story. (Photo by THE ASSOCIATED PRESS)

Virus outbreak blamed for forecast fall in oil demand

FRANKFURT — The International Energy Agency expects demand for oil to fall in the first quarter as a result of the virus outbreak that emanated in China. Any fall would represent the first quarterly decline in a decade.

The Paris-based agency said Thursday in its oil market report for February that demand in the first quarter was expected to fall by 435,000 barrels per day compared with the same period a year ago. The agency also cut its 2020 demand growth forecast by 365,000 barrels per day to 885,000.

The agency said that the consequences of the outbreak for oil demand “will be significant.”

While the brief SARS epidemic of 2003 has at times been used as a reassuring point of comparison, China’s economy has changed enormously since then. Its oil demand has almost doubled since 2003 and represented more than three-quarters of global oil demand growth last year.

The outbreak of the disease, which has been named COVID-19, from the city of Wuhan threatens to disrupt supply chains that are central to the global economy.

The IEA said that in addition travel to and from China has increased, raising the chance that the disease will spread.

By The Associated Press

oil and gas

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Education minister targeting more money to classes

Alberta Education announces new funding model

Red Deer city councillor wants to ban conversion therapy

The discredited practice is a form of psychological abuse, says Dianne Wyntjes

Updated: Summer villages oppose increased density at Buffalo Lake RV park

The summer villages of White Sands and Rochon Sands have rejected a… Continue reading

Indoor farmers market survey underway

Red Deer & District Chamber of Commerce sponsors survey

New Red Deer utility rates take effect March 1

The City of Red Deer has increased its utility fees. Beginning March… Continue reading

Your community calendar

Feb. 19 A Liberation of Holland event is being held at the… Continue reading

New highway to B.C. proposed

The Howse Pass shortcut to British Columbia is worth taking another look… Continue reading

Stolen car provides opportunity to try out public transit

I had my car stolen on Jan. 10, just as our one… Continue reading

POLL: How would you characterize Prime Minister Justin Trudeau’s handling of the rail blockades?

How would you characterize Prime Minister Justin Trudeau’s handling of the rail… Continue reading

Upsets tighten Tournament of Hearts race to championship round

MOOSE JAW, Sask. — The “pool of death” defending champion Chelsea Carey… Continue reading

Repairs will force QEII lane cloure north of Ponoka on Wednesday

Crews will be performing cable barrier repairs on the QEII Highway, five… Continue reading

Ottawa changing stress test rate for insured mortgages starting April 6

OTTAWA — The federal government is changing the stress test rate for… Continue reading

PM urges patience, promises reconciliation in face of anti-pipeline blockades

OTTAWA — Prime Minister Justin Trudeau promised to redouble reconciliation efforts with… Continue reading

Most Read