OPEC Downgrades Oil Demand Forecast

Wednesday, August 12, 2020

OPEC on Wednesday said world oil demand will fall more steeply in 2020 due to the coronavirus pandemic and said next year's recovery faces large uncertainties, pointing to growing headwinds for the group and its allies in supporting the market.

World oil demand will fall by 9.06 million barrels per day (bpd) this year, the Organization of the Petroleum Exporting Countries said in a monthly report, more than the 8.95 million bpd decline expected a month ago.

"Crude and product price developments in the second half of 2020 will continue to be impacted by concerns over a second wave of infections and higher global stocks," OPEC said in the report.

OPEC stuck to its forecast that in 2021 oil demand would rebound by 7 million bpd but said the view was subject to large uncertainties that may result in "a negative impact on petroleum consumption". 

(Editing by Jason Neely)

Categories: Energy Industry News Activity Oil Price

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