OPEC further slashes 2020 world oil demand forecast, but makes 'huge' cut in supply outlook

The Organization of the Petroleum Exporting Countries on Wednesday further cut its forecast for global oil demand in 2020, but also forecast a drop in supply as low prices take a toll on production around the world, MarketWatch reports.

In its monthly report, OPEC reduced its forecast for 2020 crude demand by 2.23 million barrels a day from its April projection. OPEC now expects oil demand to fall by 9.07 million barrels a day this year.

At the same time, the organization said it revised its non-OPEC liquids production down by a "huge" 2 million barrels a day from its previous assessment. It now forecasts a 3.5 million barrel a day decline in non-OPEC production to an average 61.5 million barrels a day in 2020.

"The revision is based on production shut-ins or curtailment plans announced by companies, including the majors, particularly in North America," the report said.

The 2020 oil supply growth forecast for the U.S. was revised down by 1.3 million barrels a day to show a decline of 1.4 million barrels a day year-over-year. Other large downward revisions were made for Canada (300,000 barrels a day) and Brazil (100,000 barrels a day). Oil supply in 2020 is now forecast to grow only in Norway, Brazil, Guyana and Australia, OPEC said.