OPEC has revised its oil outlook downwards for the rest of 2019 on weaker demand, even as global economic development uncertainties weigh on next year’s outlook.
In its July monthly outlook, the Organization of Petroleum exporting countries said oil demand is anticipated to grow by 1.10 million barrels per day (bpd) year-on-year, a reduced outlook of about 40,000 bpd compared to last month’s outlook based on weaker demand data from Americas, Asia and the Middle East in the first half of 2019.
While 2020 world oil demand is expected to grow by 1.14 million bpd, unchanged from an earlier outlook, this outlook may be revised downwards due to risks from uncertain global economic development mainly from Europe and Asia Pacific, the OEPC report said.
“While the outlook for market fundamentals seems somewhat bearish for the rest of the year, given softening economic growth, ongoing global trade issues and slowing oil demand growth, it remains critical to closely monitor the supply/demand balance and assist market stability in the months ahead,” OPEC said.
Meanwhile, the groiup, which along with Russia agreed to extend a production-cut until March 2020, said demand for its crude in 2019 was revised up by 0.1 million bpd from the previous report to stand at 30.7 million bpd, 0.9 million bpd lower than the 2018 level.
Demand for OPEC crude in 2020 was revised up by 0.1 million bpd from the previous report to stand at 29.4 million bpd, 1.3 million bpd lower than the 2018 level.