{"id":716,"date":"2020-11-11T16:33:37","date_gmt":"2020-11-11T14:33:37","guid":{"rendered":"https:\/\/sirius-energy.com\/blog\/?p=716"},"modified":"2020-11-11T16:33:37","modified_gmt":"2020-11-11T14:33:37","slug":"opec-cuts-2020-oil-demand-forecast-again-on-rising-covid-cases-sees-slower-recovery-next-year","status":"publish","type":"post","link":"https:\/\/sirius-energy.com\/blog\/2020\/11\/11\/opec-cuts-2020-oil-demand-forecast-again-on-rising-covid-cases-sees-slower-recovery-next-year\/","title":{"rendered":"OPEC cuts 2020 oil demand forecast again on rising Covid cases \u2014 sees slower recovery next year"},"content":{"rendered":"
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\"oil_opec\"<\/p>\n

OPEC\u00a0on Wednesday trimmed its global oil demand forecasts for the remainder of this year and 2021, citing a weaker-than-expected economic outlook and a surge in coronavirus cases.<\/p>\n

In a closely watched report, the group of oil-producing nations said it now expects world oil demand to contract by around 9.8 million barrels per day year over year in 2020. That reflects a downward revision of 0.3 million barrels from last month\u2019s assessment.<\/p>\n

For next year, OPEC said oil demand growth will rise by 6.2 million on an annual basis, representing a downward revision of another 0.3 million barrels from its October report. The group has steadily lowered its oil demand outlook for 2021 from an initial expectation of 7 million in July.<\/p>\n

\u201cThese downward revisions mainly take into account downward adjustments to the economic outlook in OECD economies due to COVID-19 containment measures, with the accompanying adverse impacts on transportation and industrial fuel demand through mid-2021,\u201d OPEC said in the report.<\/p>\n

The report comes ahead of the group\u2019s Nov. 30 and Dec. 1 meeting with non-OPEC allies to discuss the next phase of oil production policy.<\/p>\n

The energy alliance, a grouping known collectively as OPEC+, had agreed to a record supply cut of 9.7 million bpd starting on May 1. The cut was subsequently scaled back to 7.7 million in August and OPEC+ has said it plans further tapering next year.<\/p>\n<\/div>\n

\u2018Risks remain\u2019<\/span><\/h2>\n
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A coronavirus-led demand shock has seen oil prices collapse in 2020, with strict public health measures coinciding with curtailed travel and economic activity.<\/p>\n

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An easing of lockdown measures in the third quarter helped global oil demand to improve, but OPEC now fears a surge in the number of reported Covid-19 cases could derail an expected recovery.<\/p>\n

\u201cAs new COVID-19 infection cases continued to rise during October in the US and Europe, forcing governments to re-introduce a number of restrictive measures, various fuels including transportation fuel are thought to bear the brunt going forward,\u201d OPEC said.<\/p>\n<\/div>\n

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\"Organisation<\/picture><\/div>\n<\/div>\n<\/div>\n
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Organisation of the Petroleum Exporting Countries – OPEC logo is seen on the organisations\u2019 headquarters in Vienna, Austria.<\/span><\/strong><\/div>\n
Jakub Porzycki | NurPhoto | Getty Images<\/span><\/strong><\/div>\n<\/div>\n<\/div>\n<\/div>\n
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International benchmark\u00a0Brent\u00a0crude futures traded at $44.84 a barrel on Wednesday afternoon, up around 2.8%, while\u00a0U.S. West Texas Intermediate\u00a0futures stood at $42.52, also 2.8% higher.<\/p>\n

Both oil contracts were on pace to record their third consecutive positive trading session after hopes of an effective coronavirus vaccine continued to bolster market sentiment.<\/p>\n

Pfizer and BioNTech\u00a0said Monday\u00a0that early results showed their vaccine candidate was more than 90% effective in preventing Covid infections. It is hoped a safe and effective vaccine could help bring an end to the coronavirus pandemic that has claimed over 1.27 million lives.<\/p>\n

Huge challenges remain before a Covid-19 vaccine can be rolled out, but energy markets have cheered the news.<\/p>\n

Looking further ahead, OPEC warned \u201crisks remain\u201d with regard to oil demand.<\/p>\n

\u201cOngoing developments in the COVID-19 pandemic will continue to dominate a recovery amid the latest news relating to a potential imminent vaccine,\u201d the group said.<\/p>\n

\u201cThe structural impact of the pandemic on various sectors, especially the transportation sector, will linger well into 2021.\u201d<\/p>\n

The United States has many good reasons to open a branch or two of your corporation there.\u00a0 The<\/strong><\/em>\u00a0business<\/strong><\/a>\u00a0climate in the USA is friendly and many prospective clients are eager to see what you have to offer.\u00a0 Look into this today at #topcompanyformation.com<\/strong><\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

OPEC\u00a0on Wednesday trimmed its global oil demand forecasts for the remainder of this year and 2021, citing a weaker-than-expected economic outlook and a surge in coronavirus cases. In a closely watched report, the group of oil-producing nations said it now expects world oil demand to contract by around 9.8 million barrels per day year over […]<\/p>\n","protected":false},"author":2,"featured_media":717,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[4,3],"tags":[113,112,17],"class_list":{"0":"post-716","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-clean-energy","8":"category-oil-gas","9":"tag-economic-outlook","10":"tag-oil-demand","11":"tag-opec"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/sirius-energy.com\/blog\/wp-content\/uploads\/2020\/11\/106791908-1605098158677-gettyimages-1228705034-SHALE_JEWEL.jpeg","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pahFMi-by","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/sirius-energy.com\/blog\/wp-json\/wp\/v2\/posts\/716","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sirius-energy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sirius-energy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sirius-energy.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/sirius-energy.com\/blog\/wp-json\/wp\/v2\/comments?post=716"}],"version-history":[{"count":1,"href":"https:\/\/sirius-energy.com\/blog\/wp-json\/wp\/v2\/posts\/716\/revisions"}],"predecessor-version":[{"id":718,"href":"https:\/\/sirius-energy.com\/blog\/wp-json\/wp\/v2\/posts\/716\/revisions\/718"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sirius-energy.com\/blog\/wp-json\/wp\/v2\/media\/717"}],"wp:attachment":[{"href":"https:\/\/sirius-energy.com\/blog\/wp-json\/wp\/v2\/media?parent=716"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sirius-energy.com\/blog\/wp-json\/wp\/v2\/categories?post=716"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sirius-energy.com\/blog\/wp-json\/wp\/v2\/tags?post=716"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}