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OPEC sees even slower oil demand recovery

Published 11/11/2020, 10:14 AM
Updated 11/11/2020, 10:30 AM

OPEC says oil demand will recover even more slowly in 2021 than it previously thought.

The crude producers' group now sees demand rising next year by 6.25 million barrels per day.

That's 300,000 less than it predicted a month ago.

The group says recent moves to put Europe back into lockdown would impact demand for the rest of this year, with a lingering impact well after.

It sees demand for transportation and industrial uses both staying weak.

To tackle this year's collapse in demand OPEC and allies have made record cuts to production.

Output fell as much as 10% in the spring.

Now the glum outlook could put in question plans to increase production again next year.

This week's news on possible vaccines has, however, offered a ray of hope for oil exporters.

International benchmark prices hit two-month highs around 45 dollars a barrel on Wednesday (November 11) on hopes of an economic revival.

OPEC and allies will get together at the end of the month to decide their next move.

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