COVID-19 weighs on Oil demand, OPEC says

2020-08-12T13:53:20.000000Z

Shafaq News/ OPEC said on Wednesday that the world oil demand will steeply down-slope in 2020 due to COVID-19 pandemic and next year’s recovery faces large uncertainties, pointing to growing headwinds for the group and its allies in supporting the market.

 

The Organization of Petroleum Exporting Countries (OPEC) said in its monthly report, "global economic growth is expected to decrease to -4% in 2020", indicating that the World oil demand will fall by 9.06 million barrels per day (bpd) this year 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”.


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