- IEA revises oil demand forecasts as renewed lockdowns threaten any meaningful recovery
- The IEA cut its 1Q2021 estimate by 600 MBbl/d, however, the agency still foresees a massive drawdown in global inventories of 100 MMBbls
- The agency forecasts that consumption will increase by 5.5 MMBbls, in contrasts with its previous estimate of a 5.8 MMBbl recovery
- Coronavirus infections flare up in mainland China, threatening the oil demand outlook (Bloomberg)
- Some independent refiners have already been forced to cut crude processing rates as fuel demand has dwindled in recent weeks
- AEGIS notes that the China situation will be monitored by market participants very closely, as the country was the only major economy to expand during 2020 and served as a bulwark for oil demand
- The Baker Hughes oil rig count gained ten rigs to bring the total gas rig count to 287
- The major basins, Permian, Eagle Ford, and Denver-Julesburg, added 10, 2, and 2 rigs, respectively