On Thursday, the Organization of Petroleum Exporting Countries (OPEC) cut its global oil demand forecast for this year on the back of the historic shock caused by the coronavirus pandemic.
For 2020, OPEC estimated the global oil demand to contract by 6.9 million bpd or 6.9%. The prediction contrasted with the forecast last month of a small increase in demand of 60,000 bpd.
OPEC said in its monthly report, “The oil market is currently undergoing historic shock that is abrupt, extreme and at global scale. Downward risks remain significant, suggesting the possibility of further adjustments, especially in the second quarter.”
OPEC also foresaw that this forecast cut would likely not be the last one.
The organization expected April demand to show the steepest drop by 20 million bpd.
After the report, crude oil was trading by just above USD28/barrel.
