The world oil demand in 2020 is expected to fall by 9.07 million barrels per day (bpd) amid the recession caused by the coronavirus crisis, the OPEC noted in its monthly oil market report. In its previous publication, the OPEC forecasted the demand to decline by 6.85 million bpd.
Additional takeaways
“World is seeing unprecedented oil demand shock, worst demand contraction in major centres is expected in the second quarter of 2020.”
“In 2020, non-OPEC oil supply is forecast to decline by 3.50 million bpd.”
“US producers have so far cut output at least 1.5 million bpd in the second quarter, all producers outside OPEC+ have so far announced curbs of 3.6 million bpd.”
“OPEC says supply curbs are already started showing a positive response, with rebalancing expected to pick up faster in coming quarters.”
“OPEC oil output rose by 1.80 million bpd in April to 30.41 million bpd.”
“Saudi Arabia boosted oil output in April by 2.274 million bpd to a record of 12.007 million bpd.”
Market reaction
The barrel of West Texas Intermediate edged slightly higher in the last minutes and was last seen adding 2.15% on the day at $26.40.
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