OPEC: most of the growth in global oil demand this year will come from China and India

US media said that the organization of Petroleum Exporting Countries (OPEC) pointed out on the 15th that the improvement of the global economic outlook will help accelerate the growth of oil demand in 2020.

According to a report on the Wall Street Journal’s website on January 15, OPEC raised its forecast of global oil demand growth by 140000 barrels a day to 1.22 million barrels in 2020, and raised its forecast of global economic growth to 3.1% in 2020 in this highly focused monthly oil market report.

According to the report, OPEC’s revised oil demand growth forecast mainly reflects the improvement of the economic outlook in 2020, and most of the demand growth is expected to come from developing countries, especially China and India.

A month ago, OPEC and its allies just reached a new production reduction agreement, which will reduce production by another 500000 barrels a day until the end of March 2020, bringing the daily production reduction of the alliance to about 1.7 million barrels. OPEC’s increased production cuts are aimed at easing the impact of the slowdown in global economic growth, which last year had a knock on effect on global oil demand. In this case, OPEC cut its forecast of global oil demand growth in 2019 five times in eight months.

But those who want a more balanced supply and demand for oil may be disappointed. OPEC raised its non OPEC daily supply growth forecast by 180000 barrels to 2.35 million barrels in 2020, citing higher supply growth expectations in Norway, Mexico and Guyana.

Despite a cut in us supply growth expectations, OPEC said other non OPEC oil producing countries, such as the US, Canada, Brazil, Norway and Guyana, would lead global supply growth this year.

The report said that OPEC and its allies reached a further production reduction agreement in December last year, may not be able to curb the aggravation of the global oil supply surplus. Since January, the global benchmark Brent crude oil price has fallen by 3%, and the US crude oil futures price has fallen by 5.3% after a sharp fluctuation in the first week of January.