OPEC hinges oil demand recovery on China's consumption as prices drop

The Organisation of Petroleum Exporting Countries (OPEC) has said oil demand growth in China is currently the only certainty for rebound, with consumption in the country rising through the remainder of 2020, and recovering completely in 2021.

According to OPEC Secretary General, Mohammed Barkindo, the rest of Asia will not see a full recovery to pre-crisis levels during 2021, adding that “the latest oil demand information for the Other Asian region, which includes India but excludes China, points to the downside.”

Already, oil prices traded below $40 per barrel earlier on Monday, as Brent Crude dropped to $39.61, and Nigeria’s Bonny Light Crude closed lower at $38.98 per barrel.

“In the September edition of OPEC’s Monthly Oil Market Report, we have caveatted all of our forecasts by stressing the fact that the current outlook is very uncertain,” Barkindo said in a written interview to Platts ahead of the 36th Asia Pacific Petroleum Virtual Conference.

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