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World oil demand in 2020 is expected to fall by 9.47 million barrels per day (bpd), the Organization of the Petroleum Exporting Countries (OPEC) said in its monthly report. In the previous forecast, the decline was forecasted to be 9.46 million bpd.

Additional takeaways

“2021 oil demand rising by 6.54 million bpd (previous forecast 6.62 million bpd rise).”

The considerable economic recovery in the third quarter of 2020 is not expected to continue into the fourth quarter and in 2021 amid rise in virus infections.”

“Near term market environment is expected to remain relatively weak due to large overhang in middle distillate stocks.”

“2021 forecast for global demand for OPEC’s crude is cut by 200,000 bpd.”

“OPEC’s oil output fell 50,000 bpd in September to 24.11 million bpd.”

Market reaction

Crude oil prices retreated from daily highs after this report. As of writing, the barrel of West Texas Intermediate (WTI) was trading at $40.12, still up 1.62% on a daily basis.