Demand for transportation fuel remains weak amid a still-raging global pandemic, forcing downward revisions to oil consumption for 2020 and next year.

The International Energy Agency (IEA) said Tuesday in its Oil Markets Report for December that it lowered its demand estimate for this year by 50,000 b/d and its projection for next year by 170,000 b/d.

Citing pandemic-induced travel restrictions that continue to curb demand for jet fuel and gasoline in Europe and the United States, the Paris-based watchdog said 2020 oil demand would fall 8.8 million b/d when compared to 2019, to 91.2 million b/d, while 2021 consumption would increase by an estimated 5.7 million b/d.

IEA researchers said coronavirus vaccines that hit the market this month – and more are expected early next...