Baghdad, The Organization of Petroleum Exporting Countries (OPEC) on Friday presented a gloomy outlook for the oil market for the remainder of 2019 as economic growth slowed, highlighting the challenges of 2020, as rival producers pump more crude, justifying maintaining OPEC-led deal to curb supplies.
In a monthly OPEC report, OPEC lowered its forecast for oil demand growth in 2019 by 40,000 bpd. The market will post a slight surplus in 2020, according to Reuters.
OPEC said the demand for its oil would average 29.41 million bpd next year, down 1.3 million bpd from this year. But it raised expectations for 2020 by 140,000 barrels per day compared with expectations last month.
It said its production in July fell 246,000 bpd to 29.61 million bpd, with Saudi Arabia boosting output cuts more than the deal required. Despite this, OPEC production still exceeds the level of demand expected in 2020.
The report indicates that there will be a surplus of supply in 2020 by 200 thousand barrels per day if OPEC continues to pump oil at the rate recorded in July and the rest of the factors remain equal.
Source: National Iraqi News Agency