OPEC slashes oil demand view, says rebalancing to gather pace

OPEC on Wednesday again slashed its forecast for global oil demand this year as the coronavirus outbreak causes a global recession, although it said record supply cuts by the group and other producers were already helping rebalance the market.

The Organization of the Petroleum Exporting Countries now expects global demand to contract by 9.07 million barrels per day, or 9.1 percent, in 2020, it said in a monthly report. Last month, OPEC expected a contraction of 6.85 million bpd.

OPEC and allies, known as OPEC+, on May 1 began record supply cuts to tackle the supply glut, and other producers including the United States have also said they will be pumping less. The curbs are already delivering results, OPEC said.

"The speedy supply adjustments in addressing the current acute imbalance in the global oil market have already started showing positive response, with rebalancing expected to pick up faster in the coming quarters," OPEC said in the report.