IEA cuts 2020 global oil demand forecast; WTI slides below $41.00 mark

The International Energy Agency (IEA) released its closely-watched monthly report this Thursday and cut its 2020 global oil demand forecast. The IEA now expects world oil demand to contract by 8.8 million barrels per day this year.

The agency further added that it does not expect the prospect of a coronavirus vaccine to significantly boost demand "until well into next year." For 2021, the IEA said world oil demand growth will rise by 5.8 million barrels per day, representing an upward revision of 0.3 million barrels from last month.

The report dashed market expectations for a swift recovery in the global fuel demand and prompted some fresh selling in the oil markets. In fact, WTI crude oil prices extended the previous day's retracement slide from multi-month tops and slipped below the $41.00 mark in the last hour.