OPEC has downwardly revised its outlook for global oil demand to an average of 90.2 million barrels per day in 2020 (down 9.5% from last year) as the Coronavirus weighs on crude recovery, according to reports, citing a recent publication from OPEC on Monday.
Crude oil spot prices extended their gains in August, climbing to a six-month high.
The economic hit from the coronavirus pandemic will hurt global energy demand harder and for longer than previously feared, OPEC now says. Citing a weaker-than-expected recovery in India and other Asian countries, OPEC’s cut for oil demand growth comes with an additional warning that risks remain “elevated and skewed to the downside” for the first half of next year.
The information was published in “a closely-watched monthly report” on Monday, according to CNBC. The downward revision in OPEC’s outlook for global oil demand to an average of 90.2 million barrels per day in 2020 is down 400,000 bpd from the previous month’s estimate and reflects a contraction of 9.5 million bpd year-on-year.
Oil prices slipped on Monday, with Brent crude oil, the global benchmark, down 0.5% at $39.62 a barrel. West Texas Intermediate futures, the U.S. benchmark, were down 0.5% at $37.14 a barrel, according to the Wall Street Journal.
