Global economic and oil demand recovery is still anemic, OPEC Secretary General Mohammad Barkindo said on Monday, but noted that the cartel doesn’t see another plunge in demand like in the second quarter.
The market is increasingly concerned about the pace of demand recovery as the second coronavirus wave is sweeping through the U.S. and Europe. Additional supply out of Libya and the OPEC+ plan to ease the cuts by another 2 million barrels per day (bpd) as of January 2021 have put more pressure on oil prices in recent weeks.
Early on Monday, at 9:30 a.m. EDT, oil prices were down by around 2 percent, with the WTI Crude price trading just below $39 a barrel amid concerns about both demand and supply. On the demand side, the second wave continues to weigh on the prospects of oil demand recovery, while the return of Libyan oil is bearish for oil supply. These developments have increased market talk and speculation that OPEC+ could be forced to postpone the planned easing of the cuts.