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Opec cuts oil demand forecast again as market faces 'historic shock'

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Fuel producer cartel expects global demand to contract by 6.9 million barrels per day, or 6.9%. FMTNews Opec Oil

LONDON: Opec on Thursday again cut its forecast for 2020 global oil demand due to the “historic shock” delivered by the coronavirus outbreak, and said the reduction may not be the last.

“The oil market is currently undergoing historic shock that is abrupt, extreme and at global scale,” Opec said in the report. Oil has collapsed in 2020 due to the slide in demand, falling to an 18-year low of US$21.65 a barrel on March 30. To try to shore up the market, Opec, Russia and other producing nations have agreed to a record supply-cut pact.

 

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