Latest news 2021

OPEC lowers its forecast for oil demand in 2020

Summary

OPEC lowers its forecast for oil demand in 2020 Global oil demand in 2020 will fall more and recover more slowly than previously predicted, OPEC said. This could potentially make it harder for the group and its allies to support […]

OPEC lowers its forecast for oil demand in 2020

Global oil demand in 2020 will fall more and recover more slowly than previously predicted, OPEC said. This could potentially make it harder for the group and its allies to support the market..

OPEC lowers its forecast for oil demand in 2020

Global oil demand will fall by 9.46 million barrels per day this year, according to the monthly report of the Organization of the Petroleum Exporting Countries, which is more than expected a month ago – by 9.06 million barrels per day..

Oil prices collapse as pandemic paralyzed transport and economic activity. While some countries eased restrictions, allowing demand to rebound, rising new infections and increased oil production have put pressure on prices..

«Risks remain elevated and tend to decline. The move to remote work and conference calls will slow the pace of recovery in fuel demand to 2019 levels», – OPEC’s forecast for 2021 says.

OPEC predicts 6.62 million bpd growth in consumption in 2021, 370.00 bpd less than expected last month.

Oil stocks rose due to collapsed demand. OPEC said that stocks in developed countries fell 4.5 million barrels in July, but were 260.6 million barrels above the five-year average that OPEC considered as a desirable level before the pandemic..

Raw oil traded below $ 40 a barrel on Monday following the release of the report. This is well below the level many OPEC members need to balance their budgets.. Prices dropped by almost 15% this month.

To cope with the slump in demand, OPEC and its allies known as OPEC + agreed to a record 9.7 million barrels per day supply cut that began on May 1..

A special group of OPEC + ministers gathers this Thursday to discuss the market situation. Some delegates expressed concern about the fall in prices this month, although there is no sign so far that the group plans to adjust the supply agreement..