Coronavirus has caused 'sharpest downturn in energy and oil demand in living memory', says OPEC's 2020 World Oil Outlook
The oil price rebounded this week with both benchmarks claiming the more comfortable price above US$40 a barrel.
OPEC released a bullish World Oil Outlook to 2045 and bad weather and worker strikes also impacted the price. In Friday trading, Brent crude was priced above US$43 with west Texas Intermediate (WTI) holding above US$41 a barrel.
Hurricane season in the Gulf of Mexico will continue to threaten assets with gas and oil production shut down in anticipation of Hurricane Delta.
It's estimated that more than 90% of the offshore production will be temporarily halted until the storm passes. More than 60% of gas production will also be shut in.*This year's World Oil Outlook*
OPEC launched its World Oil Outlook this week with a 2-hour virtual in-depth discussion led by the organisation's Secretary General Mohammad Barkindo.
The report revised down global oil demand in the near term and in the longer term, having capped out at 99.7 million barrels a day in 2019.
Barkindo said 2020 was "one of the most tumultuous periods in the history of oil," but the good news is that OPEC believes that "oil will continue to account for the largest share of the energy mix by 2045".
