Steeper oil demand drop in offing due to virus, says OPEC

Reuters/Alex Lawler

“World oil demand will fall more steeply in 2020 than previously forecast due to the coronavirus and recover more slowly than expected next year, OPEC said on Monday, potentially making it harder for the group and its allies to support the market.”

USAGOLD note:  Static to dropping oil prices will not do much to get the inflation rate to the Fed’s target level.  As you can see from the chart below, oil production in Saudi Arabia, the world’s largest exporter, went off a cliff.  The recovery thus far has been moderate.

Crude Oil Production Saudi Arabia
BBL/d/1K

Chart courtesy of TradingEconomics.com  • • • Click to enlarge

Repost from 9-15-2020

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