OPEC on Wednesday raised its 2020 estimate for growth in global demand for oil, while noting that increased output from non-OPEC members would probably more than make up for it.
The oil cartel now expects demand for crude oil to grow by 1.22 million barrels per day from last year”s level, a slight increase of 140,000 b/d from OPEC”s previous outlook. Total demand would rise from 99.77 mb/d last year to 100.98 mb/d, the Vienna-based organisation said in its monthly oil report.
It said the revised forecast was due for the most part to “an improved economic outlook for 2020.” The global economy is expected to expand by 3.1 percent this year, slightly stronger than the 2019 estimate of 3.0 percent, OPEC said.
Meanwhile, crude oil production by non-OPEC members such as Guyana, Mexico and Norway would likely grow by even more, it added.
The cartel figured that output by non-OPEC members would increase by 2.35 mb/d to reach 66.68 mb/d.
OPEC and allied countries that include Russia agreed in December to curb crude oil production to keep prices from plunging, and a cut of 161,000 b/d brought their total production to 29.444 mb/d according to non-OPEC sources cited in its report.
