• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 5 mins The Downside of Political Correctness
  • 27 mins In the Event of WW3, Oil and/or Renewables?
  • 2 hours Main Stream Media falls into depressed mood today after hearing of the record May jobs report UP 2.5 MILLION JOBS !
  • 2 hours George Floyd’s History
  • 2 hours US and Australia Sign SPR Lease Agreement
  • 15 hours Rioting and Protesting
  • 2 hours Trump waves a Bible
  • 2 hours China To Boost Oil & Gas Exploration, As EU Prepares To Commit Suicide
  • 14 hours Let's try to link the recent events back to the situation with oil production and pricing
  • 1 day Healing, Not Hatred
  • 9 hours Coronavirus hype biggest political hoax in history
  • 6 hours World’s First Integrated Hydrogen Power-to-Power Demonstration Launched
  • 20 hours China’s Oil Thirst Draws an Armada of Tankers
  • 7 hours Model 3 cheaper to buy than BMW 3 series.
  • 1 day Trumps Oil Industry....
Oil Prices Fall On Bearish EIA Data

Oil Prices Fall On Bearish EIA Data

Oil prices fell on Thursday…

Did Iraq Just Doom The OPEC Deal?

Did Iraq Just Doom The OPEC Deal?

OPEC+ is close to reaching…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

OPEC Slashes 2020 Oil Demand Forecast By 9 Million Bpd

OPEC slashed on Wednesday its global oil demand estimates for this year while cutting its forecast for non-OPEC supply as oil producers outside the OPEC+ pact accelerate production curtailments due to the demand crash, low oil prices, and limited storage capacity.

In its closely watched Monthly Oil Market Report published today, OPEC revised down, again, its global oil demand forecast for this year by a massive 2.23 million barrels per day (bpd), and now sees global oil demand falling by 9.07 million bpd in 2020 compared to 2019.

“Indeed, demand contraction in 2020 can be mitigated with sooner than expected easing of government COVID-19 related measures, and faster response of economic growth to the implemented extraordinary stimulus packages,” the cartel said.

Along with slashing demand projections, OPEC also took an ax to its forecast for non-OPEC supply this year, revising it by nearly 2-million-bpd from last month. Currently, non-OPEC supply is expected to drop by 3.5 million bpd this year, driven by “production shut-ins or curtailment plans announced by oil companies – including the majors – particularly in North America.”

“According to different sources and company announcements, US producers – including oil majors – have so far cut production by at least 1.5 mb/d in 2Q20, which is likely to be achieved by shut-ins of higher-cost wells, partial reductions in output of selected wells and the deferral of ‘putting on production’ wells,’’ OPEC said.

U.S. oil supply this year was further revised down by 1.3 million bpd to now show a decline of 1.4 million bpd in 2020 compared to 2019.

According to OPEC estimates, producers outside of the OPEC+ pact had announced combined cuts of around 3.6 million bpd as of May 6, in response to the lack of demand, low oil prices, excess supply, and limited storage capacity.  

“The speedy supply adjustments in addressing the current acute imbalance in the global oil market has already started showing positive response, with rebalancing expected to pick up faster in the coming quarters,” OPEC said.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News