The world’s demand for oil this year will be lower than previously thought, according to a new projection from the Organization of Petroleum Exporting Countries (OPEC).
Global oil demand will drop by 9.46 million barrels per day (bpd) compared to demand in 2019, according to a new projection released by the group on Monday. This is down from the group’s previous projection that demand would drop by 9.06 million bpd.
The group projected an average demand for this year of 90.2 million bpd.
OPEC also revised its prediction for next year’s recovery to be slower than previously thought. Demand in 2021 will grow by 6.62 million bpd, down from its earlier projection of 7 million bpd.
OPEC is made up of 15 countries that are major oil producers, including Saudi Arabia and Venezuela.
Demand for oil has fallen sharply due to the coronavirus pandemic, as people travel less. Earlier this year, U.S. oil prices briefly dropped to as low as negative $40 per barrel. Prices have risen since then and stood at $37 per barrel Monday afternoon.
OPEC said it was revising its projections because of lower demand than expected in countries including India, which has one of the world’s worst outbreaks of COVID-19.
It also said that 2020 demand for oil in countries within the Organization for Economic Co-operation and Development (OECD) would be higher than previously projected, while non-OECD countries would have lower demand than previously thought.