OPEC on Thursday cut the forecast of global demand for its crude this year as rivals boost production, building a case to extend a supply-cutting deal with Russia and other allies beyond the first half of 2019.
In a monthly report, the Organization of the Petroleum Exporting Countries said 2019 demand for its crude would average 30.46 million barrels per day, 130,000 bpd less than forecast last month and below what it is currently producing.
OPEC, Russia and other non-OPEC producers, an alliance known as OPEC+, agreed in December to reduce output by 1.2 million bpd from Jan. 1 to prevent excess supply building up. The cut lasts for six months initially.
“While oil demand is expected to grow at a moderate pace in 2019, it is still well below the strong growth expected in the non-OPEC supply forecast for this year,” OPEC said in the report.
“This highlights the continued shared responsibility of all participating producing countries to avoid a relapse of the imbalance and continue to support oil market stability in 2019.”
OPEC sources have said an extension of the supply-cutting pact beyond June is the likely scenario. The group and its allies are due to meet in April and June to discuss policy.
In the report, OPEC said its oil output fell by 221,000 bpd month-on-month to 30.55 million bpd in February. That amounts to 105 percent compliance with pledged cuts, according to a Reuters calculation, up from January’s rate.
Oil rises after Saudis, Russia agree supply cut to be extended
Oil prices dip on fears Middle East spat could harm OPEC cuts
Oil prices dip as OPEC, non-OPEC debate capping Libya, Nigeria oil output
Shell set to exit Iraqi oil field after unfavourable changes to fiscal terms
Ghana attracts international attention as ExxonMobil acquires oil block
Shell's gas production could be triple oil by 2050 - CEO
OPEC, IEA seeing differently on outages, sanctions
Ikeja GRA enjoys 18 hours of supply, soon to be round the clock-Ikeja Electric
Oil falls on U.S. factory data, but supply lifts price outlook
Heavy crude to be in high demand in 2019 - IEA
Frontpage January 21, 2019