LETA (Reuters) – The Organization of Petroleum Exporting Countries (OPEC) said on Thursday that a surplus supply could be possible in 2019 as the global economic slowdown and production growth exceeds the expectations of third countries I did.
OPEC has only boosted its output a few months ago, but is concerned about falling crude oil prices and rising supply again and is once again trying to cut production. US President Trump has asked the OPEC not to cut production, and if he decides to cut production next month's meeting, there is also the opportunity to buy their anger.
According to a monthly report, global demand for crude oil is projected to increase by 1.29 million barrels per day next year. This reduced the increase by 70,000 bp from the previous month. We have downgraded for 4 consecutive months.
The global demand forecast for the next year from 15 Member States will be 31.54 million barrels per day. If OPEC continues to produce the same volume and other conditions are the same, it indicates that the market is 1.36 million barrels of excess.
The third-party supply is expected to increase by 2.32 million barrels per day, increasing by 120 thousand barrels compared to the previous month. This is a level that is significantly higher than the global demand growth.
Last year's recovery in oil prices, driven by reduced cooperative production by OPEC, encouraged competition to expand production.
According to a monthly newsletter: "Despite the fact that the oil market was in balance with supply and demand, it is suggested that the supply will exceed demand and the supply surplus will become serious as it is expected that the supply volume in third countries will increase in 2019."
"Lately, the fact that the global growth rate is projected to decline, and the uncertainties surrounding it confirm the pressure on the demand that has taken place in recent months."
According to a monthly report, production in the Member States increased by 127,000 barrels per day to 32.9 million barrels in October. OPEC hopes that next year will exceed consumer demand.
Venezuela and Iran's production during the economic crisis declined, while the United Arab Emirates (UAE) and Saudi Arabia grew.
Following the monthly announcement, the North Sea Brent crude futures LCOc 1 have continued to fall below $ 69 a barrel.