Oil demand this year will fall by 50% according to the latest forecasts from the International Energy Agency.
Improvements in energy efficiency will cut demand for crude from 2.3m barrels a day to 1.2mb, according to the latest report from the industry trade body.
This will coincide with global oil supply hitting a record high of 103.5mb/d as production is ramped up in the US, Brazil, Guyana and Canada, according to the analysis.
Non-OPEC+ production will dominate growth this year, accounting for close to 1.5 mb/d.
Crude prices would come under more pressure if teh IEA's prediction is accurate said market watchers.
Spot levels are already down over the past six months by 20% to U$78 a barrel.
Saudi Arabia, the world’s largest producer, and Russia, which is funding its war with Ukraine through oil sales, have both said they would cut back to help boost the crude price but with little impact so far.
Shares in BP eased 0.5% to 446.3p while Shell rose slightly to 2,382p.