OPEC monthly report cuts oil demand estimate in 2021
The Organization of the Petroleum Exporting Countries (OPEC) cut its forecast for global oil demand next year on Tuesday due to a lower economic growth outlook.
OPEC said in its monthly report that world oil demand growth is to decline to 6.5 million barrels per day (b/d) in 2021, 80,000 b/d lower than its last month's projection.
This revision mainly reflects lower economic growth outlook for both the Organization for Economic Co-operation and Development (OECD) and non-OECD regions, compared to last month's forecast, it said.
In 2020, world oil demand is estimated to decline by 9.5 million b/d year-on-year, reaching a level of 90.3 million (b/d), relatively unchanged from last month's assessment.
The global economic growth forecast remains at minus 4.1 percent for 2020, while for 2021 it is revised down to 4.6 percent, from 4.7 percent in last month's assessment.
The report said that those economies able to implement effective COVID-19 containment measures and economic stimulus in the first half of 2020 have so far fared relatively better.
This outcome leads to this month's 2020 GDP growth upward revisions in the OECD economies and China, while selective emerging and developing economies, were revised down.