OPEC further cuts world oil demand forecasts

BP Calls Out Oil Demand Peak OPEC Cuts 2021 Outlook

At same time OPEC raised its forecast for 2020 oil output, lifting its estimate for non-OPEC liquids production to rise 360,000 barrels a day to a higher recovery in USA output in June.

U.S. West Texas Intermediate (WTI) crude futures were up 9 cents, or 0.2%, at $37.42 a barrel by around 0050 GMT.

Both contracts ended last week lower, a second consecutive week of declines.

"The storm is taking production offline in the Gulf of Mexico, and the market doesn't care - that shows just how bad the situation is", said Bob Yawger, director of energy futures for Mizuho in NY.

Tropical Storm Sally is gaining strength in the area and is forecast to be a category 2 hurricane.

Production of liquid hydrocarbons in Russian Federation (oil and condensate) in August increased by 0.49 million barrels per day in monthly terms, to 9.97 million barrels per day.

The International Energy Agency is set to update its projections for global oil demand in its monthly report due on Tuesday, after an IEA official said this month that the market appeared to be stuck between a stalled recovery and the absence of any major new lockdowns.

The storm is disrupting oil production for the second time in less than a month after Hurricane Laura swept through the region.

The economic hit from the coronavirus pandemic will hurt global energy demand harder and for longer than previously feared, the Organization of the Petroleum Exporting Countries said Monday.

"This leads to dismal oil demand growth".

The Organization of Petroleum Exporting Countries (Opec) downgraded its outlook for the global oil market a few days before ministers meet, amid faltering demand and signs of a recovery in supply from United States shale drillers.

OPEC repeatedly slashed its oil demand forecast as the coronavirus hammered the global economy during the spring, before muting its most doom-laden estimates during the summer.

Monday's report comes ahead of the meeting of OPEC's joint ministerial monitoring committee Thursday, at which the cartel and its allies will discuss plans to further relax production curbs in the coming months.



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