OPEC sees gradual oil demand recovery

OPEC forecast a gradual recovery in global demand for oil, which has been hammered by the coronavirus crisis, and said record supply cuts by producers were already helping to rebalance the market.

In a monthly report, the Organization of the Petroleum Exporting Countries said demand would decline by 6.4 million barrels per day in the second half of 2020, less than the drop of 11.9 million daily barrels in the first six months of the year.

“The oil market was strongly supported by a reduction of the global crude oil surplus, thanks mainly to the historic voluntary production adjustment agreement,” OPEC said, adding it saw a “gradual recovery” in demand until the end of the year.

In the report, OPEC did not further reduce its forecast for world oil demand in 2020, after steep cuts in earlier months. Still, downside risks remain for consumption in top consumer the United States, OPEC said.