Oil prices appreciated Tuesday after the Organization of the Petroleum Exporting Countries (OPEC) said that world oil demand would fall by 9.46 million barrels per day (bpd) in 2020.
OPEC said there will be a decline in demand in its monthly report for September, released on Monday.
In its previous forecast, the oil cartel put the decline at 9.06 million bpd.
The global oil cartel said the crude oil production by the 13-member organisation increased by 760,000 bpd to an average 24.05 million bpd in August.
“Crude oil output increased mainly in Saudi Arabia, UAE, Kuwait, Algeria and Angola, while production decreased primarily in Iraq,” OPEC said, in the report.
Details of the report showed that 2021 oil demand is expected to rise by 6.62 million bpd, lower than previous forecast of 7.0 million bpd rise.
“Coronavirus impact remains challenging and requires coordinated policy action from all market participants including OPEC+,” the cartel said.
“Forecast for global demand for its crude lowered by 700,000 bpd in 2020 and by 1.1 million bpd in 2021, due to higher non-OPEC supply view and lower global demand.”
“August oil output rose by 760,000 bpd to 24.05 million bpd as OPEC+ eased supply cut; compliance rises to 103%.”
Crude oil prices edged slightly higher Tuesday afternoon after it recorded a fall Monday evening.
As of press time Tuesday afternoon, PREMIUM TIMES’ check showed that the barrel of West Texas Intermediate (WTI) was trading at $37.86, gaining 1.61 per cent Tuesday.
Brent Crude, against which Nigeria’s oil is benchmarked, was trading at $40.14, gaining 1.34 per cent.