The global economic growth being healthier in the year 2020 has been expected to lead the demand for oil becoming higher in the year and OPEC has said that in their closely watched MOMR on this Wednesday.
OPEC had raised their forecast for growth in the year 2020 by a percentage point of 0.1 to 3.1 percent.
With the economic outlook for this year improved, the cartel had revised its forecast up for the oil demand in the globe for the year 2020 by 140,000 bpd (barrels per day) to a level of 1.22 million barrels per day.
The growth in demand of oil in the economies which are developed is going to be only 90,000 bpd for this year because of the economies in America which are mature, however the bulk of the demand of global oil growth is going to come form the economies in Asia specifically from China and India as per OPEC. The demand of oil and its growth in the countries which are not in OECD is going to be 1.13 million barrels per day in the year.
The lower rates of interest environment have been said to support the expected growth of the economy at a level of 3.1% in the year 2020. Besides, a bit of support additionally may come possibly from the companies that have a lot of space in their fiscal and take the opportunity of borrowing at rates which are very low or sometimes the rates being negative for the financing of the projects of infrastructure which have been expected to support oil demand as per OPEC. The cartel had also revised their non-OPEC supply of oil in the growth estimates for the year by a level of 180,000 bpd.
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