Report: Demand for oil falls by 8-9% in 2020 – Official

MOSCOW, Feb 15 (PRIME) -- The global oil market has partially recovered from the COVID-19 pandemic, while demand contracted by 8-9% as of the end of 2020, Deputy Prime Minister Alexander Novak said during a TV show aired on Rossiya 1 television channel on February 14.

“If we speak about oil, we saw a slump in demand of about 20-25% due to the restriction measures that the governments of many countries took to prevent the spread of COVID-19, but as of the end of the year, the market recovered, and the contraction amounted to around 8-9%,” he said.

It was only a partial recovery, and the market has more ground to regain after the fall it suffered in April–May 2020, he said.

Still, the oil market is balanced with the current price corresponds to its condition.

“We registered low volatility in the past few months, which means that the market is in a balanced state, and the prices that we see on the market obviously correspond to the market situation,” Novak said.

The average annual oil price in 2021 will amount to U.S. $45–60 per barrel, he added.

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