OPEC: Pandemic Will Hit Oil Demand Harder than Expected

Global oil demand will decline this year by an average of 9.1 million barrels per day, according to the new cartel report. The coronavirus pandemic will affect global oil demand more than previously expected. This follows from the Organization of the Petroleum Exporting Countries (OPEC) monthly report release on Wednesday, August 12. According to updated OPEC estimates, the corresponding figure to decrease this year by an average of 9.1 million barrels per day (more than 9 percent compared to the past year data) and is to reach 90.6 million barrels per day. Meanwhile, the report for July cited a figure of 9.2 million barrels. Nevertheless, an increase of 7 million barrels per day is expected in 2021, experts say. At the same time, they proceed from the fact that such a forecast will be relevant only if the world community does not have to resort to a new large-scale series of restrictions due to coronavirus. OPEC urges to monitor the situation in the United States At the same time, OPEC believes that global economic activity as a whole will decline by 4 percent (in the previous forecast it was 3.7 percent). The organization's experts urge to monitor the situation in the United States with particular attention. "The latest rise in the infection rate in the United States will needs to be closely watched since if such a trend continues it may undermine recovering consumer confidence and spending patterns," the report said. In addition, experts draw attention to the need to monitor the course of the pandemic in India, Brazil and in a number of Eurozone states, including Spain. Earlier in an interview with DW, political scientist Frank Umbach, a well-known German expert on energy and security policy, told why he thinks Russia is not to fully recover its oil revenues.