OPEC sees 2020 world oil demand falling by 8.95 million bpd

The global oil demand is expected to decline by 8.95 million barrels per day (bpd), OPEC said in its latest monthly report published on Tuesday. This figures came in slightly better than the 9.07 million bpd decrease forecasted in the previous report.

Additional takeaways

"2021 forecast assumes no downside risks materialise such as trade tensions or high debt levels."

"OPEC sees 2021 oil demand recovering to grow by an all-time high of 7 million bpd."

"In 2020 non-OPEC oil supply is forecast to decline by 3.26 million bpd (prev. estimate 3.23 million bpd drop)."

"OPEC sees 2021 non-OPEC liquids production growing by 0.92 million bpd due to US, Brazil, Norway, Canada."

"Efficiency gains, remote working to cap oil demand gains in 2021 to remain below 2019 levels."

"OPEC raises 2020 demand forecast for its crude by 0.2 million bpd to 23.8 million bpd."

"OPEC sees 2021 demand for its crude rising by 6 million bpd to 29.8 million bpd."

Market reaction

Crude oil prices largely ignored this report and the barrel of West Texas Intermediate was last seen trading flat on the day at $39.60.