The international price of crude oil, fell to $39 per barrel on Monday, as demand for crude oil continues on a downward trend making the Organisation of the Petroleum Exporting Countries (OPEC) to further cut its outlook for demand growth.
Meanwhile, OPEC figures show that Nigeria’s, crude oil production rose to 1.36 million barrels per day in August from 1.35 million bpd in July.
OPEC, in its monthly oil market report for September, said the crude oil production by the 13-member cartel increased by 760,000 bpd to an average 24.05 million bpd in August.
According to OPEC report: “Crude oil output increased mainly in Saudi Arabia, UAE, Kuwait, Algeria and Angola, while production decreased primarily in Iraq,”.
Brent crude oil fell by $0.36 to $39.47 per barrel on Monday, after the report was released.
A 15 percent fall in prices has been recorded in September.
OPEC and its allies, known as OPEC+, agreed in April to an output cut to pursue a slump in demand and prices caused by the COVID-19 pandemic.
OPEC+ decided to cut supply of Brent crude by a record 9.7 million barrels per day for May and June. The cut in supply will now hover around 7.7 million bpd from August through till December.
OPEC said on Monday that the effect of the COVID-19 outbreak on economic growth had significantly impacted oil demand growth in the first half of 2020.
The group forecasts that world oil demand would continue to fall in 2020 than previously forecast due to the pandemic and recover more slowly than expected next year, potentially making it harder for OPEC+ to support the market.
OPEC said demand for its crude this year will average 22.6 million bpd, down 700,000 bpd from the previous forecast.
This means there will be excess supply if OPEC continues pumping at 7.7 million bpd.
2021 forecast has been cut by 1.1 million bpd.