OPEC sees historic oil demand fall by 6.8 mln bpd in 2020

MOSCOW, Apr 16 (PRIME) -- OPEC expects a historic record fall in oil demand of 6.8 million barrels per day in 2020, the organization said in a report on Thursday. 

"For 2020, the world oil demand growth forecast is revised lower by 6.9 million barrels per day, to a historical drop of around 6.8 million barrels per day," OPEC said.

Global oil demand in 2020 is expected at 92.82 million barrels per day.

"The impact of the COVID-19 outbreak in China in January–March, and its negative impact on transportation and industrial fuels in the country, has since spread globally and is now affecting oil demand growth in most other countries and regions, with an unprecedented impact on global oil demand, transportation fuels in particular," the statement read

The new OPEC deal can cut Russia's oil and gas condensate output by 1.3 million barrels per day as compared with 2019 to 10.14 million barrels per day.

"For 2020, Russian liquids supply is expected to decline by 1.30 million barrels per day on the year to average 10.14 million barrels per day, revised down by 1.38 million barrels per day compared to last month’s assessment. Russia carries the largest share of the production adjustments of the non-OPEC countries participating in the agreement," the organization said.

"Non-OPEC liquids production growth in 2020 (including processing gains) has been revised down by a considerable 3.26 million barrels per day from the previous assessment and is now forecast to decline by 1.50 million barrels per day in 2020. The expected global economic recession due to COVID-19 and resulting demand shock are also forecast to cause considerable supply disruptions," OPEC said.

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