OPEC cuts 2021 global oil demand forecast amid rising COVID-19 cases

The Organization of the Petroleum Exporting Countries (OPEC) revised its forecast lower for global oil demand growth in 2021 as COVID-19 cases continued to rise.

The organization expects global demand for oil to decline by 9.5 million barrels per day (bpd) year-on-year, to 90.3 million bpd in 2020.

Meanwhile, global demand for oil is expected to increase by 6.5 million bpd to 96.8 million bpd in 2021, which is about 80,000 barrels per day less than the previous estimate.

The report, citing secondary sources, reported a decline in OPEC’s oil production by 50,000 bpd to 24.10 million bpd in September.

Although the economic recovery in the third quarter of 2020 was impressive in some economies, OPEC’s near-term trend remains fragile amid a variety of uncertainties, especially the trajectory of the coronavirus.