On Wednesday (11), OPEC (Organization of Petroleum Exporting Countries) warned that due to the rising numbers of coronavirus cases, global demand for oil will recover more slowly in 2021 than anticipated and this will undermine efforts by the group and allies to support the market.
Through the monthly report, the organization showed that demand is expected to grow by 6.25 million barrels per day (bpd) next year to 96.26 million bpd. The expected growth is 300,000 bpd lower than forecast a month ago. According to Reuters, the weakening could even cause Opec+ to postpone the planned increase in oil supply next year.
"The recovery in oil demand will be severely damaged and weakness in demand for transportation and industry fuels is now expected to last until mid-2021," OPEC said in the report.