The Day at a Glance | September 14 2020

The Top

· OPEC adjusts demand for crude oil estimates downwards.

· Boris Johnson presents the law denounced by Europe as a threat to Brexit agreements in Parliament.

· Economic indicators: Industrial production falls less than expected in Europe (-7.7% monthly in July vs -8.2% e.).

Economic environment

According to the monthly report published by the Organization of the Petroleum Exporting Countries (OPEC), demand for crude oil will fall more in 2020 than initially anticipated. The OPEC expects a contraction in global demand of up to 9.46 million daily barrels, as the virus`s impacts are longer lasting than initially expected and the economic recovery and demand for energy is not as strong as anticipated in Asia. The organization also expects the recovery in demand to be slow in 2021 (+6.62 mdb), especially in India during the first half of the year. The OPEC considers that the revision of risks is still skewed downwards as uncertainty regarding new COVID-19 outbreaks at a global level and the absence of a treatment or a vaccine persist. The OPEC`s report contributes to a weak outlook for the oil market onwards. In September, international crude oil prices have fallen close to 14%.