the World’s oil reservoirs will soon be overcrowded, — such opinion was expressed by the head of the International energy Agency, Fatih Birol. This is due to the failure of the transaction OPEC+, and a drastic reduction in energy consumption due to the outbreak of coronavirus.
In this case, Birol noted, the recovery of demand will not be easy and quick, and encouraged major market players to take a more responsible attitude.
the Global demand for oil due to the coronavirus may fall to 20 million barrels a day, which is about 20%, said the head of the International energy Agency, Fatih Birol.
“Today, three billion people are unable to move. As a result, it can reach up to 20 million barrels per day”, — quotes its words news Agency PRIME.
According to the head of the IEA, the daily demand is about 100 million barrels, 60% of which is spent on fuel for transportation. Because of the restrictions on air travel and quarantine in many countries in light of the coronavirus demand falls.
in addition, Fatih Birol also said that many companies engaged in the production of liquefied natural gas can stop working. Contracts the largest exporters of LNG linked to oil prices, and they will suffer.
“Many countries that export LNG, such as Australia and Qatar, whose contracts are tied to oil prices, will be seriously affected. I would expect that the American LNG sector will also suffer from this. We may see multiple closing around the world,” he said.
Birol did not rule out that the lower prices will push many countries to switch from coal to gas.