OPEC revised down its world oil demand growth projections to 1.08 million barrels per day (mb/d) for 2020, a 60,000 barrels per day (bpd) decrease from its projections a month ago, according to its September monthly report released Wednesday.
World oil consumption for 2020 is now anticipated to reach 100.92 mb/d.
The organization said it made the change primarily to accommodate the world economic outlook for 2020.
OPEC has revised down its global economic growth forecast to 3.1 percent for 2020, compared to its previous forecast of 3.2 percent. “This was triggered by the ongoing slowdown in the US and the eurozone, lower-than-expected H1 2019 growth in India, rising sovereign debt issues in Argentina, and the continuation of the US-China trade dispute, among other factors,” the report said.
The report also noted additional risks posed by the ongoing slowdown in global manufacturing activity, coupled with challenges in emerging and developing economies and high levels of debt is developed economies.
“In such an environment, a stable commodities market, especially crude-oil market, will be important to economic growth,” the report added.
Although world oil demand growth is forecast at around one mb/d for 2019 and 2020, strong growth in non-OPEC supply is likely to outpace demand, according to OPEC.
“This highlights the shared responsibility of all producing countries to support oil market stability to avoid unwanted volatility and a potential relapse into market imbalance,” the report said.
Demand for OPEC crude in 2019 was revised down to 30.6 mb/d, one mb/d lower than 2018. While 2020 anticipated demand for OPEC crude stands at 29.4 mb/d, 1.2 mb/d lower than 2019.