Yesterday, OPEC cut its forecast for global growth in oil demand for 2020 due to COVID-19 outbreak, and stressed that its output fell sharply.

In a report, OPEC stated that 2020 demand for its crude will average 29.30 million barrels per day, that is 200,000 barrels per day less than previously thought.

“The impact of the coronavirus outbreak on China’s economy has added to the uncertainties surrounding global economic growth in 2020, and by extension global oil demand growth,” OPEC said in the report.

It is important to underline that in January, OPEC over-delivered on its cuts, lowering supply by 509,000 barrels per day to 28.86 million barrels per day, due to involuntary losses in Libya.