Opec Sees "Devastating Contraction" in Demand for Crude

OPEC again revised down its estimate for world crude demand on Wednesday, saying a “devastating contraction” in consumption would keep prices under pressure in the months ahead.

“In the coming months, the market is expected to remain under pressure from uncertainties in the economic outlook, demand deterioration and the substantial overhang in supply,” the Organization of Petroleum Exporting Countries wrote in its latest monthly report.

It said “vigilant monitoring is essential” ahead of the cartel’s next meeting at the end of May at which some members are expected to push for further output cuts to help support prices.

“Oil demand is suffering more and more from the world economic recession,” it said, saying this had resulted in another downward revision in its forecast for demand this year of 0.4 million barrels per day (bpd).

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