Low demand could stall oil prices until 2030

6 July 2020 (Last Updated July 6th, 2020 06:58)

6 July

Oil demand witnessed an unprecedented shock in 2020 as the Covid-19 pandemic brought the world to a standstill.

Lockdown measures and decline in mobility is expected to lead to the largest fall in oil demand in history in 2020.

Although demand returned in the second quarter, oil demand may not return to peak before 2030.

Daniel Lacalle, an economist and chief economist at Tressis SV, shared an article on the forecasts on oil demand made by Goldman Sachs.

Demand for oil is expected to return to pre-Covid-19 pandemic levels by 2022, according to analysts at Goldman Sachs.

The article adds that global demand for oil is expected to decline by 8% in 2020 and rebound by 6% in 2021.

Further, Goldman Sachs analysts predict that oil prices are not expected to peak before 2030.

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