OPEC further cuts world oil demand forecasts

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The Organization of the Petroleum Exporting Countries on Monday cut its outlook for world oil demand growth in 2020 and 2021, with the hit from the COVID-19 pandemic now expected to linger longer than previously expected. OPEC, in its monthly report, said it now expects global oil demand to contract by 9.5 million barrels a day to 90.2 million barrels a day, versus its previous call for a 9.1 million barrel-a-day fall. OPEC revised up its forecast for demand from developed economies that make up the Organization for Economic Cooperation and Development by around 100,000 barrels a day but dropped its forecast for non-OECD demand “due to weaker performance in Other Asia, particularly in India.” For 2021, OPEC said it expected weakness in Asia demand to spill over, while a slower recovery in transportation fuel requirements in the OECD will limit oil demand growth potential in the region. OPEC said it now expects world oil demand to grow by 6.6 million barrels a day to 96.9 million barrels a day in 2021, around 400,000 barrels a day below its previous forecast. At same time OPEC raised its forecast for 2020 oil output, lifting its estimate for non-OPEC liquids production to rise 360,000 barrels a day to a higher recovery in U.S. output in June. OPEC said its crude oil production in August increased by 760,000 barrels a day month-over-month in August to average 24.05 million barrels a day, according to secondary sources.
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