Paris: The world is set for its first annual decline in oil consumption in more than a decade due to the impact of the coronavirus outbreak, the International Energy Agency (IEA) said on Monday.
In its latest report, which did not take into account an oil price war that has broken out after Saudi Arabia and Russia failed to agree to continue production cuts, the International Energy Agency chopped its forecast for oil demand by 1.1 million barrels per day (mbd) in its base case scenario.
Saudi Arabia, the world's biggest oil exporter, is attempting to punish Russia, the world's second-largest producer, for balking on Friday at production cuts proposed by the Organisation of the Petroleum Exporting Countries (OPEC).
OPEC and other producers supported the cuts to stabilise falling prices caused by the economic fallout from the coronavirus outbreak.
Saudi Arabia has opened the war by cutting its official selling prices for April for all crude grades to all destinations by between $6 and $8 a barrel.
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