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The Organization of the Petroleum Exporting Countries (OPEC) expects the global oil demand to grow by 5.9 million barrels per day (bpd) in 2021, compared to 6.25 million bpd in the previous forecast, the monthly report showed on Monday.

Additional takeaways

“2020 world oil demand to fall by 9.77 million bpd (previous forecast 9.75 million bpd drop).”

“Lower 2021 oil demand view reflects uncertainty around COVID-19 impact on OECDtransport fuel use in the first half of 2021 and forecast of mild winter.”

“Recent news about the possibility of vaccination programs in major economies provides upside to 2021 economic growth forecast.”

“OPEC cuts 2021 forecast for global demand for its crude by 200,000 bpd to 27.2 million bpd.”

“OPEC’s oil output rose 710,000 bpd in November to 25.11 million bpd, driven by Libya recovery.”

Market reaction

Crude oil prices came under selling pressure on this publication. As of writing, the barrel of West Texas Intermediate (WTI) was posting small daily losses at $46.60.