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Global Oil Demand Set to Drop First Time in Decade on Virus

  • IEA sees demand drop of 435,000 barrels a day in first quarter
  • Markets face considerable surplus despite OPEC+ output cuts
A deserted street in Wuhan, China.

A deserted street in Wuhan, China.

Photographer: Getty Images/Getty Images

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Global oil demand will drop this quarter for the first time in over a decade as the coronavirus batters China’s economy, the International Energy Agency said.

The new estimates show that oil markets face a significant surplus despite the latest production cuts by OPEC and its partners. Crude already sank to a one-year low below $50 a barrel last week and the impact of the epidemic will be felt throughout the year, the agency said.