OPEC again cuts 2021 oil demand forecast as virus cases rise

LONDON, Oct 13 (Reuters) - World oil demand will rebound
more slowly in 2021 than previously thought as coronavirus cases
rise, OPEC said on Tuesday, adding to headwinds faced by the
group and its allies in balancing the market.
Demand will rise by 6.54 million barrels per day
(bpd) next year to 96.84 million bpd, the Organization of the
Petroleum Exporting Countries said in a monthly report. The
growth forecast is 80,000 bpd less than expected a month ago.
Oil prices have collapsed as the coronavirus crisis
curtailed travel and economic activity. While in the third
quarter an easing of lockdowns allowed demand to recover, OPEC
sees the pace of economic improvement slowing again.
"While the 3Q20 recovery in some economies was impressive,
the near-term trend remains fragile, amid a variety of ongoing
uncertainties, especially the near-term trajectory of COVID-19,"
OPEC said of the economic outlook.
"As this uncertainty looms large, amid a globally strong
rise in infections, it is not expected that the considerable
recovery in 3Q20 will continue into 4Q20 and in 2021."
OPEC has steadily lowered its 2021 oil demand growth
forecast from an initial 7 million bpd expected in July.
The group also cut its estimate of world oil demand in the
current quarter by 220,000 bpd. It left its estimate of the
scale of this year's historic contraction in oil use steady at
9.47 million bpd.
To tackle the drop in demand, OPEC and its allies, known as
OPEC+, agreed to a record supply cut starting on May 1, while
the United States and other nations said they would pump less.
In the report, OPEC said its output fell by 50,000 bpd to
24.11 million bpd in September. That amounted to 104% compliance
with the pledges, according to a Reuters calculation - up from
August's figure of 103%.
OPEC also forecast demand for its crude will be 200,000 bpd
lower than expected next year at 27.93 million bpd, because of
the reduced global demand outlook.