OPEC: Forecast for 9.07 million bpd decline in world oil demand in 2020 unchanged

The Organization of the Petroleum Exporting Countries (OPEC) announced in its monthly report that it left its forecast that world oil demand in 2020 will drop by 9.07 million barrels per day (bpd) due to coronavirus crisis unchanged. 

Additional takeaways

"World oil demand to drop by 6.4 million bpd in second half of 2020 20 vs. 11.9 million bpd drop in first half of 2020 with gradual recovery forecast until year-end."

"OPEC's crude output fell by 6.3 million bpd in may to 24.195 million bpd based on secondary sources, as group implemented record supply cut."

"OPEC delivers 84% of pledged supply cuts in May."

"In 2020 non-OPEC oil supply is forecast to decline by 3.23 million bpd (prev. estimate 3.53 million bpd drop)."

"OPEC cuts forecasts demand for its crude in 2020 to 23.6 million bpd, down 700,000 from the previous forecast."

"OECD commercial oil stocks rose by 107.7 million barrels in April to stand 140.6 million barrels above the latest five-year average."

Market reaction

The barrel of West Texas Intermediate (WTI) edged slightly higher and was last seen gaining 0.23% on the day at $38.