LONDON, July 11 (Reuters) – OPEC forecast on Thursday that global demand for its crude oil will decline next year as competitors pump more crude oil, suggesting a surplus despite the OPEC-led agreement to limit supply.
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The decline in OPEC’s demand for crude oil underlines that OPEC’s policy of supporting oil prices by cutting production is continuing to boost the supply of shale and other competitors in the United States.
In its monthly report, the Organization of Petroleum Exporting Countries (OPEC) gave its first forecast for 2020, saying that next year the world will need 29.27 million barrels of crude oil per day from 14 member countries, a decrease of 1.34 million barrels compared with this year.
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OPEC said that “tight U.S. crude oil production is expected to continue to grow, because the new pipeline will allow more Permian crude oil to flow into the U.S. Gulf Coast Export Center.”
In the report, OPEC also predicted that, despite the slowdown in growth in the major economies of the world, world oil demand will grow at the same pace this year, and the world economy will grow at the same rate this year.