Sep 14, 2020
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OPEC downgraded forecast for fall in oil demand in 2020

The Organization of Petroleum Exporting Countries (OPEC) has downgraded its forecast of a drop in global oil demand in 2020 by 0.4 million barrels per day. A decrease in demand for the year is expected by 9.5 million barrels - up to 90.2 million barrels per day.

In 2021, global oil demand will grow by 6.6 million barrels per day, which is about 0.4 million barrels per day lower than the previous estimate. On average, demand will be 96.9 million barrels per day, - quotes TASS September OPEC report.

The organization also raised its forecast for oil production in non-OPEC countries by 360 thousand barrels per day in 2020 due to the resumption of drilling in the United States and Canada. According to her, the growth of world oil demand in 2021 will amount to 6.6 million barrels per day, oil production in non-OPEC countries will increase by 1 million barrels per day.

Oil reserves of developed countries in July 2020 were fixed at around 3.2 billion barrels, which is 273.7 million barrels higher than last year and 260.6 million barrels higher than the average for the last five years. In August, OPEC countries increased oil production by 0.76 million bpd, to 24.05 million bpd, mainly due to increased production in Saudi Arabia, the UAE and Kuwait.

As wrote, the export of Russian oil in monetary terms in July 2020 fell 2.2 times compared to July last year and by 8.4% compared to June - to $ 4.829 billion. According to the Federal Customs Service, the decline export in monetary terms was due to its reduction in physical terms, as the cost of oil from Russia in July, on the contrary, even increased by 5% - to $ 43.91 per barrel of Urals grade. Thus, the physical export of oil in the reporting month fell by 24% year-on-year and by 14.8% month-on-month - to 17.486 million tons amid recovery in demand in the domestic market.

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