IEA Predicts the Largest Gas Market Drop in History in 2020
OREANDA-NEWS. By the end of 2020, global gas markets will experience the “largest recorded demand shock in the history.” This is stated in the report of the International Energy Agency (IEA) entitled “Gas 2020. Analysing the impact of the Covid-19 pandemic on global natural gas markets.”
The document says that the pandemic hit an already decreasing demand for gas. “Gas consumption is expected to fall by 4 % in 2020, under the successive impacts of lower heating demand from the warm winter, the implementation of lockdown measures in almost all countries and territories to slow the spread of the virus, and a lower level of activity caused by the Covid 19 induced macroeconomic crisis,” it reads. It is specified that global gas demand during the current year will decrease by 150 billion cubic meters.
“Faced with this unprecedented shock, natural gas markets are going through a strong supply and trade adjustments, resulting in historically low spot prices and high volatility,” the report adds.
However, IEA experts expect demand for gas to recover gradually in 2021, but conclude that the global crisis connected to coronavirus outbreak will have longer-term effects on markets.