OPEC: 2020 world oil demand to decline by 9.46 million bpd

World oil demand in 2020 is expected to fall by 9.46 million barrels per day (bpd), the Organization of the Petroleum Exporting Countries (OPEC) said in its monthly report. In the previous forecast, the decline was expected to by 9.06 million bpd.

Additional takeaways

"2021 oil demand expected to rise by 6.62 million bpd  (previous forecast 7.0 million bpd rise)."

"Coronavirus impact remains challenging and requires coordinated policy action from all market participants including OPEC+."

"Forecast for global demand for its crude lowered by 700,000 bpd in 2020 and by 1.1 million bpd in 2021, due to higher non-OPEC supply view and lower global demand."

"August oil output rose by 760,000 bpd to 24.05 million bpd as OPEC+ eased supply cut; compliance rises to 103%."

Market reaction

Crude oil prices edged slightly higher in the last minutes. As of writing, the barrel of West Texas Intermediate (WTI) was trading at $37.33, gaining 0.1% on the day.