OPEC expects global oil demand to fall by 9.1 million bpd in 2020

The Organization of the Petroleum Exporting Countries (OPEC) expects global oil demand to decrease by 9.1 million barrels per day (bpd) in 2020, lower by around 0.1 million bpd from last month’s estimates.

The oil demand growth is forecast to rise by 7 million bpd in 2021, unchanged from last month, with total world consumption now pegged at 97.6 million bpd next year, OPEC said in its latest monthly report.

The forecast assumes that COVID-19 will largely be contained globally, with no further major disruptions to the global economy. Consequently, economic activities are projected to rebound steadily in both Organization for Economic Co-operation and Development (OECD) and non-OECD.

The report estimates non-OPEC oil supplies to decline by 3.03 million bpd, year-on-year (YoY).

On the other hand, OPEC’s production rose by 980,000 barrels per day to 23.17 million bpd in July 2020.

OPEC and its allies agreed to reduce daily production cut this month after it implemented record cuts from May to July.