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UPDATE 3-Oil edges higher but bleaker demand outlook weighs

Tue, 15th Sep 2020 05:53

* IEA trims 2020 demand forecast by 200,000 bpd

* OPEC expects 2020 demand to fall by 9.46 mln bpd (vs 9.06
mln a
month ago)
(Updates throughout, changes dateline)

By Ahmad Ghaddar

LONDON, Sept 15 (Reuters) - Oil prices edged slightly higher
on Tuesday, but forecasts of a slower than expected recovery in
global fuel demand due to the coronavirus pandemic weighed.

Brent crude was up 33 cents, or 0.8%, at $39.94 a
barrel by 0910 GMT, while U.S. West Texas Intermediate (WTI)
crude futures were up 31 cents, or 0.8%, at $37.57 a
barrel. Both contracts fell on Monday.

The International Energy Agency (IEA) on Tuesday trimmed its
2020 outlook by 200,000 barrels per day (bpd) to 91.7 million
bpd, citing caution about the pace of economic recovery.

"We expect the recovery in oil demand to decelerate markedly
in the second half of 2020, with most of the easy gains already
achieved," the IEA said in its monthly report.

Its revision chimes with forecasts from major oil industry
producers and traders, with OPEC downgrading its oil demand
forecast and BP saying demand might have peaked in 2019.

World oil demand will tumble by 9.46 million bpd this year,
the Organization of the Petroleum Exporting Countries said in a
monthly report on Monday, more than the 9.06 million bpd decline
OPEC expected a month ago.

Still, a meeting of the OPEC+ joint ministerial committee
on Thursday is not expected to make recommendations for deeper
output cuts, but rather focus on compliance and compensation
mechanisms for its current cuts, sources told Reuters.

Concerns over supply disruptions in the United States from
Hurricane Sally provided some price support.

Energy companies, ports and refiners raced on Monday to shut
down as Hurricane Sally grew stronger on its approach to the
central U.S. Gulf Coast, the second significant hurricane to
shutter oil and gas activity in the past month.

Meanwhile, China's crude oil throughput in August rose from
a year ago, reaching its second-highest level on record, as
refineries worked to digest record imports earlier this year.

(Additional reporting by Yuka Obayashi in Tokyo; editing by
Jason Neely)

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