The Organization of Petroleum Exporting Countries (OPEC) has cut its forecast for global growth in oil demand this year due to the coronavirus outbreak.
In its Monthly Oil Market Report released on 12 February, OPEC said that in 2019, world oil demand growth is revised down by 0.02 million barrels per day (mb/d), from last month’s assessment; amid weaker- than-expected oil demand growth data from the Organization for Economic Cooperation and Development (OECD) America in most parts of the year.
Now, world oil demand is estimated to have grown by 0.91 mb/d and average 99.74 mb/d in 2019. Oil demand growth in 2020 is revised down by 0.23 mb/d from the previous month’s assessment, OPEC said. With this, global oil demand is now forecast to grow by 0.99 mb/d and average 100.73 mb/d for 2020, with OECD oil demand growing by 0.01 mb/d in 2020, while non-OECD oil demand is growing by 0.98 mb/d. “The outbreak of the Coronavirus in China during 1H20 is the major factor behind this downward revision,” OPEC said in the report.
Regarding world oil supply, the oil cartel said the non-OPEC liquids production growth for 2019 is revised up by 0.02 mb/d from the previous month’s assessment and is now estimated at 1.88 mb/d, to average 64.36 mb/d.
According to OPEC, the US is expected to remain the main growth driver in 2020, along with Norway, Brazil, Canada, Guyana and Australia.