OPEC expects lower global demand for oil

OPEC said it expects lower demand for its crude oil in 2020 even as global demand rises.

The United States will see total liquids output exceed a 20 million barrel per day (bpd) milestone for the first time, the OPEC forecast in its market report.

U.S. liquids output will reach 20.21 million bpd in the fourth quarter of 2020 - almost meeting U.S. demand of 21.34 million bpd, OPEC said.

It lowered its 2020 demand forecast for OPEC crude by 0.1 million barrels per day to 29.5 million, Reuters reported.

That would be around 1.2 million bpd lower than in the whole of 2019 and in line with December production, when OPEC’s share of global output fell 0.1 percentage point month on month to 29.4%.

OPEC said it had raised its overall 2020 oil demand growth outlook by 0.14 million bpd to 1.22 million bpd from the previous month, reflecting an improved economic outlook and booming demand in India and China. If that growth materialises it would be 30% stronger than in 2019.

It raised its forecast for non-OPEC oil supply growth in 2020 by 0.18 million bpd to 2.35 million bpd, up from 1.86 million bpd in 2019.