The Organization of the Petroleum Exporting Countries (OPEC) oil cartel said Thursday that the world market for crude is undergoing an unprecedented shock due to coronavirus mitigation measures that have decimated demand.
"The oil market is currently undergoing a historic shock that is abrupt, extreme and at global scale," said the group of producer nations in its latest monthly report.
OPEC now expects global demand to contract by 6.9 million barrels per day (bpd), or 6.9%, in 2020, the report said. Last month, OPEC expected a small increase in demand of 60,000 bpd.
"Downward risks remain significant, suggesting the possibility of further adjustments, especially in the second quarter," OPEC said of the demand forecast.