Global oil demand is unlikely to get a significant boost from the roll-out of vaccines against COVID-19 until well into 2021, the International Energy Agency (IEA) said on Thursday, a view that curbed oil price gains since vaccine progress was announced earlier this week.
It is far too early to know how and when vaccines will allow normal life to resume. For now, our forecasts do not anticipate a significant impact in the first half of 2021.
Brent crude fell 0.8% to $43.46 a barrel in early London trade, snapping three straight days of gains.
Draws on oil storage would halt in the first quarter of 2021 if the producer group carried through on its plans to taper their production cut pact.
The IEA revised up its prediction for demand growth in 2021, which will still represent a drop of 3 million bpd below pre-pandemic levels in 2019.