Oil demand will be affected by new restrictions in Europe

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New restrictions imposed in Europe to stop the spread of the coronavirus pandemic (COVID-19) will reduce the outlook for global oil demand, Keisuke Sadamori, head of the International Energy Agency’s Energy Markets Department, told Reuters on Monday.

However, the impact will be less severe than after the restrictions imposed in March, the IEA official said, according to Agerpres. “Much of Europe is facing isolation measures. They will certainly have a negative impact on oil demand. We certainly expect the impact to be lower this time than during previous restrictions. This time schools are open and some stores as well,” said Keisuke Sadamori.

The price of a barrel of Brent oil has stabilized at around $40, but fears of declining demand persist, and markets are following developments in the United States, following the announcement by US President Donald Trump regarding legal objections to the vote.

The US media announced Joe Biden, with 273 large voters, as the winner of the November 3 election, thanks to his success in the key state of Pennsylvania. Biden would become the 46th president of the United States.

“The oil and gas industry, especially in the United States, is eagerly awaiting developments in the United States. If the Democratic Party has plans for a radical transformation to low-carbon energy sources, and if the Republican Party maintains its majority in the Senate, there will be obstacles in adopting the legislation. Overall, we have to wait for the final results,” said Keisuke Sadamori.

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