COVID May Disrupt Oil Demand More Than Initially Thought

August 11, 2020

The Wall Street Journal is reporting that the coronavirus will have an even bigger impact on global oil demand than previously thought, based on their analysis of OPEC’s latest projections.

OPEC, or the Organization of the Petroleum Exporting Countries, forecast that total worldwide oil demand for this year will amount to 90.6 million barrels a day, a 9.1 million barrel decrease from last year.

The current projection for the decline in demand is steeper than in their previous monthly report. They also updated their projection for the global economy. The group now expects a 4% contraction, worse than the 3.7% they had previously projected.

Despite noting concerns about ongoing outbreaks in the U.S., as well as India, Brazil, and parts of the EU like Spain, OPEC left their projection for a record-breaking rebound in 2021 unchanged.

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