Global demand for oil could recover next year as lockdown restrictions are lifted but a potential second wave of the Covid-19 pandemic and the implications of economic recovery packages linked to energy transition pose challenges, according to the International Energy Agency (IEA).

IEA said in its monthly oil report that while the oil market remains fragile, the recent modest recovery in prices suggests that the first half of 2020 is ending on a more optimistic note.

The Paris-based agency said oil demand in 2020 is expected to fall by 8.1