consumption to exceed 100 million barrels per day in 2020 – The Economic Newspaper

World oil consumption will surpass 100 million barrels per day (mbd) in 2010, up 1.14% from this year, according to data presented by OPEC cited by Efe.

The Organization of the Petroleum Exporting Countries revealed today in Vienna that this increase has as main drivers the Chinese and Indian economies during the presentation of its monthly analysis.

OPEC made the reckoning based on a predicted growth of the world economy for next year of 3.2%, in line with 2019, and with the expectation that there will not be a worsening of the commercial war between China and the United States.

However, the entity pointed out some risk factors, such as the high indebtedness of some countries, the consequences of the 'Brexit' and a drop in industrial activity.

Still, the organization points to a demand of 101.01 million barrels per day on average.

Even if China's consumption is expected to grow less than this year, the Asian country is expected to absorb 13% of all its crude oil, only behind Europe, which will still consume minus 0.21% , according to OPEC.

The data collected by the organization also point to an increase in demand from India of 3.54%.

In turn, Latin America is expected to consume 1.3% more oil next year than in 2019, especially in the transport and manufacturing sectors.

Brazil, Ecuador, Argentina and Venezuela are the countries where consumption will increase the most, according to OPEC's presentation.

In terms of supply, OPEC says it will lose market share next year, when its supply will cover 29% of world supply, compared to the 30% forecast for this year.

The organization also recalled that it had agreed with several major producers, such as Russia, to extend until March 2020 a voluntary reduction of production to cope with "uncertainties" and avoid an oversupply that would drive down prices.

In light of this, the US is expected to increase its output by 9 percent to 20.26 mbd, OPEC estimates, recalling that with current production, crude oil imports have already fallen by 11 percent in the first half of this year.

Venezuela, in turn, plagued by an economic and political crisis, continues to extract less crude, with June dropping 2.13% against May.

The US embargo, both on Venezuela and Iran, has hampered activity in both countries, OPEC notes, indicating Tehran saw its production fall by 6% in June.

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