Search ForexCrunch

The Organization of the Petroleum Exporting Countries (OPEC) has announced in its monthly report that it lowered its forecast for world oil demand by 6.9 million barrels per day (bpd) due to the coronavirus impact on the economy. 

Additional takeaways

“Oil demand contraction in Q2 2020 to be around 12 million bpd; demand in April to contract by about 20 million bpd.”

“Ddownward risks in oil demand forecast remain significant, suggesting possibility of further adjustments.”

“Non-OPEC oil supply is forecast to decline by 1.50 million bpd in 2020.”

“Oil output rose by 821,000 bpd month on month in March to average 28.61 million bpd.”

Market reaction

The barrel of West Texas Intermediate edged higher in the last minutes and was last seen adding 1.2% on the day at $20.40.