OPEC Slashes Oil Demand Forecast as Virus Threatens New Glut
- Group cuts 1Q demand-growth estimate by 440,000 barrels/day
- Cartel now faces oil surplus of 570,000 barrels a day in 2Q
Photographer: Andrey Rudakov/Bloomberg
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OPEC slashed forecasts for global oil demand as the coronavirus hits fuel use in China, leaving the group facing a renewed glut despite its recent production cuts.
The cartel reduced projections for demand growth in the first quarter by 440,000 barrels a day, or about a third, in its monthly report. Oil prices sank to a one-year low on Monday as the infection leaves businesses idle and millions quarantined in the world’s biggest crude importer.