OPEC Lowers Oil Demand by 230,000bpd

• OPEC Lowers Oil Demand by 230,000bpd

Following Coronavirus outbreak that disrupted global business activities and Chinese economic situation, the Organisation of Petroleum Exporting Countries (OPEC) has lowered its 2020 global oil demand projection by 230,000 barrels per day.

On Wednesday the cartel said coronavirus was making it impossible to precisely predict global economy outlook, especially with the world’s largest importer of the commodity, China, affected as companies and flights continue to ground operations.

In the report released on Wednesday, OPEC said: “The impact of the coronavirus outbreak on China’s economy has added to the uncertainties surrounding global economic growth in 2020, and by extension global oil demand growth in 2020.”

“Clearly, the ongoing developments in China require continuous monitoring and assessment to gauge the implications on the oil market in 2020.”

“The coronavirus outbreak is expected to mainly impact the Asian jet fuel and gasoline markets due to the suspension of flights and select road transportation services in China,” OPEC said. “However, the full extent of the coronavirus impact on product markets should be more evident in the coming months.”

Brent crude oil, against which Nigerian oil is priced, declined 1.09 percent to $55.18 per barrels while the US West Texas Intermediate oil dipped by 0.66 percent to $50.83 percent a barrel.