OPEC Sharply Lowers Forecast for World Oil Demand in 2020
OREANDA-NEWS. The Organization of the Petroleum Exporting Countries (OPEC) has cut the forecast of world oil demand this year by 230 thousand barrels per day. Thus, this figure is expected to be 990 thousand barrels, as it follows from the organization’s report.
OPEC believes that demand will weaken due to the spread of new coronavirus infection. It is expected that in the first half of 2020, demand for oil in China due to the epidemic will fall by 200 thousand barrels per day. The organization estimates the effect on global demand at 400 thousand barrels per day for the same period. The reason will be a reduction in consumption of fuel, primarily aviation fuel.In the beginning of January, crude oil prices in the world have already fallen by about 20 % due to concerns about oil demand in China.