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The Organization of the Petroleum Exporting Countries (OPEC) in its latest monthly report said that it forecasts the global oil demand to decline by 9.06 million barrels per day (bpd), compared to 8.95 million bpd in the previous report.

Additional takeaways

“Oil prices in the second half of 2020 will continue to be impacted by concerns over a second wave of coronavirus infections and higher global inventories.”

“2020 second-half outlook points to need for continued efforts to support market rebalancing through OPEC+ production adjustments.”

“2021 oil demand expected to grow 7 million barrels per day but large uncertainties prevail and may result in negative impact going forward.”

“Forecast for global demand for OPEC’s crude lowered by 400,000 bpd in 2020 and by 500,000 bpd in 2021, partly due to higher non-OPEC supply view.”

“OPEC’s July output rose  by 980,000 bpd to 23.17 million bpd; compliance slips to 97%.”

“OECD oil stocks rose in June to stand 291.2 million barrels above the latest five-year average.”

Market reaction

Crude oil prices edged lower on this report and the barrel of West Texas Intermediate (WTI) was last seen trading at $42.20, still up 1.4% on the day.