The Covid-19 pandemic’s crushing impact to energy demand and prices has led the Organization of the Petroleum Exporting Countries, aka OPEC, to again reduce its forecast for oil into 2020.

Consensus WTI Sept. 15

The International Energy Agency (IEA) on Tuesday also reduced for the second consecutive month its outlook for oil demand. IEA also warned that Covid-19 may play havoc with consumption into 2021. 

In its Monthly Oil Market Report (MOMR) issued on Monday, OPEC reduced its 2020 crude forecast by another 0.7 million b/d from an August forecast. It now expects to see 2020 crude demand of 22.6 million, around 6.7 million b/d lower than in 2019. 

Demand for OPEC crude in 2021 was revised down by 1.1 million b/d from last month’s forecast to 22.6 million b/d, which would be around 5.5 million...