The Covid-19 lockdown experience of reduced commuting and business travel alon
The Covid-19 lockdown experience of reduced commuting and business travel alongside better air quality and family time may deliver lasting changes in energy consumption, Moody’s Investors Service said on Monday.
Recessionary forces and weaker long term growth expectations will place pressure on both corporate and household demand, it said in the latest credit outlook report.
At the same time, the risk of behavioural change along with increasing use of biofuels, electric vehicles and improved engine efficiency adds to the likelihood of oil demand eroding over time.
Economic outlook, behavioural shifts and decarbonisation trends combine to increase the challenge of forecasting oil demand. “We consider scenarios for oil demand going into 2021 which are three to five million barrels per day (bpd) lower than 2019 levels as Covid disruption limits oil-based activities.”
The strength of post-Covid economic growth will determine oil demand growth drivers, said Moody’s. If economic growth does not offset the…