Both the IEA and Opec revised down their expectations for Q4 demand by more than 1mn b/d in their latest monthly reports released this week. Global inventory drawdowns will therefore be considerably slower in the final months of the year than was expected before the Covid-19 pandemic’s second wave engulfed large parts of the western hemisphere.

The downgrades were not restricted to 2020. The IEA has revised down its 2021 demand expectations by a substantial 120,000 b/d, with sharp downwards revisions in the first two quarters of the year. Meanwhile, Opec cut 2021 demand by an even more substantial 590,000 b/d, including a huge 1.20mn b/d downgrade for 4Q 2021. (CONTINUED - 798 WORDS)