OPEC cuts 2020 oil demand forecast

The Organization of the Petroleum Exporting Countries (OPEC) cut its forecast for oil demand growth this year, citing a weaker-than-expected recovery in India and other Asian countries.

In its latest monthly report, the group of oil-producing nations revised its outlook for global oil demand to an average of 90.2 million barrels per day (bpd) in 2020, down 400,000 bpd from the previous month’s estimate.

OPEC now expects global oil demand to increase by 6.6 million bpd to an average of 96.9 million bpd next year, which is also 400,000 bpd lower than its previous estimate.

Furthermore, the report warned that the risks remain elevated and skewed to the downside, particularly in relation to the development of COVID-19 infection cases and potential vaccines.