Draconian lockdown measures introduced in China to combat outbreaks of Covid-19 mean global oil demand will not be as high as expected, the International Energy Agency has said, helping cushion the impact of the dwindling supply from Russia.
In its monthly report on world oil markets, the IEA said it expected Russia’s output to fall by 1.5m barrels per day (bpd) in April, with the decline accelerating to 3m bpd from May, as buyers either voluntarily boycott Kremlin-controlled supplies or hold back because of uncertainty over sanctions.
