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Lower 2020 Demand for Its Oil, Points to Surplus - Opec

Gasoil News - Published on Mon, 15 Jul 2019

Image Source: CNBC
Opec forecast world demand for its crude will decline next year as rivals pump more, pointing to the return of a surplus despite an Opec-led pact to restrain supplies. Giving its first 2020 forecasts in a monthly report, the Organization of the Petroleum Exporting Countries said the world would need 29.27 million barrels per day of crude from its 14 members next year, down 1.34 million barrel per day from this year.

Global economic growth is expected to remain steady at 3.2% in both 2019 and 2020. Global oil demand growth, despite some uncertainty, is forecast at 1.14 mb/d for both 2019 and 2020.
In 2H19, seasonally strong demand is expected, as is also becoming apparent based on the recent draws in US crude oil stocks.

Non-OPEC supply has been revised down in the latest MOMR, mainly due to the extension of the voluntary production adjustments by participating countries of the Declaration of Cooperation and downward revisions for Brazil and Norway.

Saudi Arabia plans to keep its crude oil production under 10 mb/d in August, with exports averaging below 7 mb/d, to avoid any excess build in stocks. The strong commitment of the DoC members was reaffirmed as the 6th OPEC-Non-OPEC Ministerial Meeting extended voluntary production adjustments for an additional nine months, to 31 March 2020.

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Posted By : Sanju Moirangthem on Mon, 15 Jul 2019
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