Nov. 11 (UPI) — OPEC on Wednesday revised down its world oil forecast for 2020, saying demand is off by virtually 10 million barrels a day after a 3rd quarter closely impacted by the COVID-19 pandemic.
The month-to-month report by the Group of Petroleum Exporting Nations, a key indicator of the well being of the worldwide oil trade, stated it expects demand to “stay adversely affected” by way of the ultimate three months of 2020.
“Transportation and industrial gas are anticipated to stay adversely affected all through [fourth quarter],” the report states.
Consequently, world oil demand is now anticipated to contract by round 9.eight million barrels per day in 2020, in comparison with final 12 months. That estimate is off by 300,000 barrels per day in comparison with OPEC’s final evaluation a month in the past.
The report was a bit extra optimistic about 2021, projecting that oil demand will develop by 6.2 million barrels per day, which can be off 300,000 barrels from final month’s forecast.
“These downward revisions primarily take into consideration downward changes to the financial outlook in [relevant] economies resulting from COVID-19 containment measures, with the accompanying adversarial impacts on transportation and industrial gas demand by way of mid-2021,” the report added.
OPEC member Saudi Arabia, has indicated that it and others could modify plans to revive provide when the group meets later this month.
OPEC stated it expects COVID-19 measures to proceed even when a vaccine is authorised and distributed worldwide.
Wednesday’s report additionally stated OPEC’s world financial progress forecast continues to indicate a contraction of 4.3% for 2020 and barely revised down the estimate for 2021, from 4.5% to 4.4%.