OPEC cuts world oil-demand growth forecast, citing coronavirus impact

The Organization of the Petroleum Exporting Countries in its monthly report, said Wednesday that it expects growth in world demand for crude to grow by 990,000 barrels a day in 2020, down 230,000 barrels a day from its January forecast. The cartel said the outbreak of COVID-19 in China was "the major factor behind this downward revision." The revision brings OPEC's estimate of 2020 world oil demand to 100.73 million barrels a day. OPEC also cited the viral outbreak for its decision to lower its estimate of global economic growth in 2020 by 0.1 percentage point to 3%. On the supply side, the organization said it expected non-OPEC liquids production growth of 2.25 million barrels a day in 2020, down 100,000 barrels a day from its January assessment, with a large cut in the U.S. production forecast partly offset by upward adjustments for other regions. Oil futures were higher in early trade, with West Texas Intermediate crude for March delivery up 77 cents, or 1.5%, at $50.71 a barrel on the New York Mercantile Exchange.

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