A gradual recovery in global oil demand forecast by OPEC. The Covid-19 crisis has hammered the global oil demand. Record supply cuts by producers were already helping to rebalance the market, the Organization said.
The OPEC in a monthly report said demand would decline by 6.4 million bpd in July to December 2020. It is less than the drop of 11.9 million bpd in January to June.
Travel and economic activity have been curtailed by lockdowns to limit the spread of the virus, dragging down oil prices. Concern over new virus outbreaks has kept a lid on prices even though some places in Asia and Europe have eased restrictions.
A record supply cut that started on May 1 agreed by OPEC and its allies to tackle the drop in demand. Other nations including the US would pump less crude. After steep cuts in earlier months, the forecast for world oil demand in 2020 was not further reduced by OPEC. In the US, however, downside risks remain for consumption.
