Global oil demand will begin to get better within the second half of the yr from the crash within the second quarter, however it’s going to nonetheless be down by 6.4 million bpd in H2 from year-ago ranges as demand for fuels will proceed to be constrained by the coronavirus pandemic and the measures to comprise it, OPEC said in its Monthly Oil Market Report (MOMR) on Wednesday.
According to the cartel, the loss in world oil demand will sluggish to 6.4 million bpd within the second half of the yr, in comparison with an estimated decline of 11.9 million bpd within the first half of the yr.
OPEC left its full-year 2020 world oil demand projection unchanged at a decline of 9.1 million bpd.
“Transportation fuels are forecast to remain under pressure in 2H20, despite ongoing easing in lockdown measures. Aviation fuel is expected to continue facing challenges, as national and international flights are anticipated to only slowly recover, while teleworking/teleconferencing restricting business travel,” OPEC stated.
In addition, gasoline consumption may even endure due to the excessive unemployment charge within the United States and decreased commuting, whereas industrial fuels will probably be impacted by weaker manufacturing all over the world, the cartel stated.
OPEC now sees demand for its crude at 23.6 million bpd this yr, revised down by 700,000 bpd from the earlier month’s estimates. This yr’s demand for OPEC crude is anticipated to be down by 5.8 million bpd in comparison with 2019.
OPEC’s crude oil manufacturing in May was greater than the cartel’s expectations for demand for its crude—at 24.19 million bpd, OPEC’s crude oil manufacturing dropped by 6.3 million bpd from April, as per OPEC’s secondary sources.
Saudi Arabia slashed in May its manufacturing to the required 8.5 million bpd quota, and so did its key Gulf companions Kuwait and the United Arab Emirates (UAE), whereas Iraq, whereas slicing manufacturing by 340,000 bpd to 4.165 million bpd, was nonetheless method off the mark.
By Tsvetana Paraskova for Oilprice.com
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