Energy agency forecasts lower demand for oil as Covid cases surge

Influential IEA cuts forecasts for rebound in market as new lockdowns bite

World oil demand will be lower than forecast this year as a surge in new coronavirus cases looks likely to keep restrictions on the global economy in place, the International Energy Agency has said.

The agency warned that a string of new lockdowns across big economies will keep a lid on oil demand over the first months of the year, before the impact of Covid-19 vaccines begins to take effect in the second half.