The International Energy Agency (IEA) has predicted grim circumstances for the oil market across the world even after the successful trials of the coronavirus vaccine.
According to the details, IEA forecasted that the vaccine was unlikely to ride to the rescue of the global oil market for a period of time.
This projection came following a huge rise in the infections of the dread virus in the United States and elsewhere in the world. According to IEA, the tightened travel restrictions are likely to lead to a slower than expected recovery in global oil demand.
IE said that new restrictions that will dent demand while the world waits for a desperately needed vaccine that may not be widely available for months.
With such an uncertain outlook clouded by the resurgent virus, there may be a case for OPEC+ countries to reconsider their strategy until the market has absorbed the supply glut.
The IEA reported that Organisation for Economic Co-operation and Development (OECD) oil inventories fell for a second consecutive month by 19.7 million barrels in September to 225 million barrels above their five-year average, which are still at historically high levels.