The Organisation of the Petroleum Exporting Countries (OPEC) has said that it expects an 8.5 per cent drop in demand for its oil for the rest of 2020.
This implies an 8.5m barrel per day drop from last year’s demand.
The organisation said this in its monthly report for May.
OPEC said that the balance between demand and supply for the fossil fuel is readjusting fast.
It was making this analysis in response to the supply glut that saw Brent trade at lows of $12 and American Western Texas Intermediate briefly enter minus last April.
“The speedy supply adjustments in addressing the current acute imbalance in the global oil market has already started showing positive response, with rebalancing expected to pick up faster in the coming quarters,” OPEC said in its monthly report.
The Saudi Arabia-led oil bloc, said the worse case scenario for the petroleum industry will play out between April and June.
It said different stimulus packages adopted by governments will help the industry wake up faster, adding that oil production outside its control will drop by 3.5m barrels daily.