OPEC trims 2020 oil demand, sees virus fears weighing on prices
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 Organisation 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”. – Reuters