OPEC Forecasts Lower Demand for Crude Oil

OPEC Forecasts Lower Demand for Crude Oil

The Organization of Petroleum Exporting Countries (OPEC) forecasts a lower demand for its crude oil despite the global demand increase after the US-China trade deal, according to Reuters.

OPEC has anticipated a decline in crude oil demand by 0.1 million barrels per day (mmbbl/d) compared to December’s forecast, to stand at 29.5 mmbbl/d, which is 1.2 mmbbl/d lower than OPEC’s 2019 level.

It is also expected that this year and with the increasing global demand, OPEC’s market share will further drop as a result of an output boost in non-OPEC rivals.

It is worth noting that OPEC has raised its overall oil demand growth outlook in 2020 by 0.14 mmbbl/d to reach 1.22 mmbbl/d from the previous month, and in case that growth materializes, it would be a 30% stronger than how it was in 2019.

“The collaboration between OPEC and non-OPEC producing countries remains essential in maintaining stability in the oil market,” OPEC said.


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