The Organization of the Petroleum Exporting Countries in its April Monthly Oil Market Report (MOMR) estimates that the world oil demand has grown by 0.83 million bpd to 99.67 million bpd in 2019. For 2020, OPEC expects global oil demand to be 92.82 million bpd, dropping by around 6.8 million bpd, the largest demand decline in history. Demand in the second quarter of this year is expected to plunge by around 12 million bpd, with April suffering a collapse of about 20 million bpd.
China became the first country to see its oil demand plunging due to the coronavirus outbreak. The fallout is now felt across the globe as American, European, and Asian countries impose lockdowns to contain the diseases spread. As a result, global oil demand is under intense pressure. With people being restricted from leaving their homes, demand for road and aviation fuels dwindle. The halt in business activity also drags fuel demand from the industrial and commercial sector.
OPEC expects oil consumption in OECD countries to decline by 3.99 million bpd to 43.92 million bpd in 2020, compared to 47.91 million bpd in the previous year. Meanwhile, non-OECD oil demand is expected to fall by 2.9 million bpd this year. OPEC also warned of significant downward risks due to the latest developments, and the large uncertainties in the future. The group suggested a possibility of further revisions, especially in the second quarter, depending on the market developments.
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Published on April 17, 2020 3:24 PM (GMT+8)Last Updated on April 17, 2020 3:24 PM (GMT+8)
