Global oil demand is expected to recover by Q4 2020, the Saudi energy minister said before a meeting of OPEC oil producers and their allies, collectively known as OPEC+.
“Based on the average projections of various institutions, including OPEC, EIA and the IEA, it is estimated that the world will reach about 97% of pre-pandemic oil demand during the fourth quarter — which is a big recovery from the huge falls in April and May,” said Prince Abdulaziz bin Salman.
OPEC+ reduced its historic production cuts of 9.7 million barrels per day (bpd) down to 7.7 million bpd earlier in the month, and achieved 97% compliance last month. Still, some countries have lagged behind, including Iraq, Nigeria, Kazakhstan, and Angola, and will compensate with additional cuts until September.
“We should endeavour to put this temporary compensation regime behind us, by clearing all the past over-production by the end of September,” Prince Abdulaziz said.
