WED, FEB 12 2020-theG&BJournal-The Organisation of Petroleum Exporting Countries (OPEC) has revised lower World oil demand growth in 2020 by 0.23 mb/d to 0.99 mb/d.
OPEC said in its monthly report published Wednesday that the Coronavirus outbreak in China and its impact on transportation and industrial fuels in China and other regions accounted for most of the downward revision.
According to OPEC, the world is now projected to consume 100.73 mb/d in 2020, with 2H20 recording higher consumption than 1H20.
The OECD oil demand was revised down by 0.08 mb/d, mainly due to lower economic projections for OECD Asia Pacific compared with last month, and a warmer-than-expected winter in the Northern Hemisphere, denting heating fuel requirements.
In non-OECD, 2020 oil demand projections were also revised lower, mainly in China and Other Asia to reflect the Coronavirus and its impact on transportation fuels, with jet fuel being impacted the most, as well as industrial fuels in China and nearby Other Asia countries.
Oil demand was revised lower by 0.15 mb/d in non-OECD in 2020 with most of the downward revisions in 1H20. The slower economic expectations for China and India were also accounted for.
The impact of the Coronavirus outbreak on China’s economy has added to the uncertainties surrounding global economic growth in 2020, and by extension global oil demand growth in 2020.
The death toll from the Coronavirus outbreak jumped to 1,116 today after another 97 deaths were reported by China’s national health commission. More than 44,600 people have been confirmed as infected across China.
‘’Clearly, the ongoing developments in China require continuous monitoring and assessment to gauge the implications on the oil market in 2020,’’ said.
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