IEA says oil outlook improves 'somewhat' on easing virus lockdowns, output cuts

News Image

MG News | May 14, 2020 at 01:20 PM GMT+05:00

May 14, 2020: An easing of draconian coronavirus lockdown measures and a spectacular reduction in output are helping the oil market steady after a "Black April," the International Energy Agency said Thursday.

"Since then, the outlook has improved somewhat and prices, while still far below where they were before the start of the COVID-19 crisis, have rebounded from their April lows," it said in its latest monthly report.

The IEA said the focus in its April review was the "demand destruction on a historic scale" caused by the coronavirus pandemic, which slashed consumption just as OPEC kingpin Saudi Arabia and Russia, its erstwhile OPEC+ group ally, started a price war and pumped even more crude into an already flooded market.

The result -- prices at more than 20-year lows, plunging at one point to an unprecedented minus $40 a barrel before Saudi Arabia and Russia finally called a halt and agreed to overall production cuts of 9.7 million barrels per day. Since then, Saudi Arabia has promised to reduce output further while non-OPEC states -- especially the United States -- have also slashed production in an effort to stabilise the market.

The recent price recovery is due to "the easing of lockdown measures and -- more important -- steep production declines in non-OPEC countries alongside the commitments made by the OPEC+ agreement," the IEA said.

"We estimate that from a recent peak of four billion, the number of people living under some form of confinement at the end of May will drop to about 2.8 billion worldwide," it said.

AFP/APP

Related News

Name Price/Vol %Chg/NChg
KSE100 166,498.84
185.04M
-0.57%
-952.30
ALLSHR 100,481.40
703.99M
-0.51%
-519.61
KSE30 49,764.01
68.59M
-0.64%
-319.08
KMI30 240,340.56
94.21M
-0.36%
-880.32
KMIALLSHR 65,599.63
389.80M
-0.33%
-217.28
BKTi 45,136.63
31.52M
-1.09%
-499.60
OGTi 35,252.30
4.64M
-0.58%
-205.48
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 81,820.00 81,895.00
81,225.00
200.00
0.25%
BRENT CRUDE 106.44 106.58
106.30
0.72
0.68%
RICHARDS BAY COAL MONTHLY 110.00 0.00
0.00
-6.70
-5.74%
ROTTERDAM COAL MONTHLY 108.25 108.25
107.25
0.00
0.00%
USD RBD PALM OLEIN 1,191.50 1,191.50
1,191.50
0.00
0.00%
CRUDE OIL - WTI 97.59 97.88
97.23
-3.58
-3.54%
SUGAR #11 WORLD 15.00 15.42
14.92
-0.38
-2.47%

Chart of the Day


Latest News
May 14, 2026 at 11:11 PM GMT+05:00

Govt strengthens cybersecurity framework


May 14, 2026 at 10:56 PM GMT+05:00

Govt unveils population control strategy


May 14, 2026 at 10:47 PM GMT+05:00

Govt prioritizes industry, agriculture growth


May 14, 2026 at 07:00 PM GMT+05:00

SBP reserves rise by $17m



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg