The Organization of the Petroleum Exporting Countries (OPEC) has dramatically cut its expected forecast for global oil demand this year, anticipating global demand to contract by 9.07 million barrels per day (mmbbl/d) or 9.1% in 2020, as per OPEC’s monthly report.

According to Reuters, this upcoming quarter will see the steepest decline in demand and demand forecast, lowered by 5.4 mmbbl/d in Q2 2020.

“The speedy supply adjustments in addressing the current acute imbalance in the global oil market have already started showing positive response, with rebalancing expected to pick up faster in the coming quarters,” OPEC said.

“Further downside risks remain and relate to the timing of lifting extensive lockdowns, as well as to how specific economic sectors, i.e. aviation and services, will look in the aftermath,” it said of Europe.