The Organization of Petroleum Exporting Countries (OPEC) has further reduced its forecast for global oil demand amid the weaker-than-expected recovery in India and other Asian countries, according to an OPEC report.
In a report published on September 14, the global oil demand was revised to 90.2 million barrels per day (mmbbl/d) in 2020. That represents a 400,000 bbl/d decline from last month’s estimate. Furthermore, this reflects a contraction of 9.5 million bbl/d year-on-year (YoY).
Oil demand grew by 100,000 bbl/d in Organization for Economic Cooperation and Development (OECD) countries However, in non-OECD countries, oil demand was revised down by 500,000 bbl/d due to weaker oil demand performance in Asia, particularly in India.
The group said in a report, “risks remain elevated and skewed to the downside, particularly in relation to the development of Covid-19 infection cases and potential vaccines. Furthermore, the speed of recovery in economic activities and oil demand growth potential in Other Asian countries, including India, remains uncertain.”
The final revisions for 2021 expect to see global oil demand to grow by 6.6 mmbbl/d to an average of 96.9 mmbbl/d next year.