OPEC downgrades forecast for fall in global oil demand in 2020

The Organization of the Petroleum Exporting Countries (OPEC) has once again lowered its forecast for global oil demand in 2020. Now experts are expecting its reduction by 9.75 million barrels per day to last year's level – up to 90.01 million barrels per day. The previous forecast assumed a decrease in demand in 2020 by 9.47 million barrels per day – to 90.29 million barrels per day.

The outlook was lowered amid rising incidence of Covid-19 in the US and Europe, leading to new restrictive measures.

The forecast for 2021 assumes that demand will grow by 6.25 million barrels per day – up to 96.26 million barrels. Previously, the organization was expecting an increase in demand next year by 6.54 million barrels per day – up to 96.84 million barrels.

OPEC did not provide a forecast for its own oil production in 2020, but noted that in October, production of 13 cartel member countries increased by 0.32 million barrels per day compared to September – to 24.39 million barrels per day. Most of the growth was in Libya, Iraq and Nigeria.