BAKU, Azerbaijan, May 13
By Leman Zeynalova – Trend:
World oil demand in 2020 is projected to significantly decrease by 9.07 million barrels per day (mb/d), 2.23 mb/d below last month’s estimate, to average 91.10 mb/d, Trend reports citing OPEC’s Monthly Oil Market Report (MOMR).
OPEC believes that industrial fuels are also forecast to face pressure in response to reduced manufacturing activity compared with last year, negatively affecting diesel and residual fuel demand.
Petrochemical feedstock is projected to decline year-on-year, driven by slower end-user requirements for plastics.
In the region covered by the Organization for Economic Co-operation and Development (OECD) , oil demand is anticipated to plunge by 5.19 mb/d y-o-y, a downward revision of 1.20 mb/d from the previous month’s assessment, due to further bleak indications for the transportation sector in OECD Americas and Europe at the beginning of 2Q20.
The COVID-19 outbreak and its downward impact on transportation and industrial fuels was reassessed and is now assumed to further deepen y-o-y oil demand losses.
In the non-OECD region, oil demand is foreseen to plummet by 3.88 mb/d, 1.03 mb/d lower than last month’s projections. Oil requirements for Other Asia, Latin America and the Middle East were revised lower in light of additional strict measures taken by various governments in an effort to contain the spread of COVID-19. Similar to the OECD region, the impact will be felt mainly in transportation and industrial fuels, which are now forecast to decline at an unprecedented rate.
World oil demand growth in 2019 is estimated to have remained unchanged at 0.83 mb/d from the previous month’s assessment, with total oil demand at 99.67 mb/d for the year. OECD oil demand is estimated to have declined by around 0.10 mb/d due to a large drop in OECD Asia Pacific oil requirements and weakerthan-expected oil demand growth in OECD Americas and Europe. Non-OECD oil demand is estimated to have increased by 0.93 mb/d, led by solid demand for petroleum products in both China and Other Asia.
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