Global oil market faces surplus throughout 2019 as demand slows
Supply will outpace demand forcing Opec to mull introducing another output-curb agreement in place
London — Global oil supply will outpace demand throughout 2019, as a relentless rise in output swamps growth in consumption that is at risk from a slowing economy, the International Energy Agency (EIA) said on Wednesday. In its monthly report the Paris-based IEA left its forecast for global demand growth for 2018 and 2019 unchanged from last month at 1.3-million barrels per day (bpd) and 1.4-million, respectively, but cut its forecast for non-Organisation for Economic Co-operation and Development (OECD) demand growth, the engine of expansion in world oil consumption. “In the first half of 2019, based on our outlook for non-oil cartel Opec production and global demand, and assuming flat Opec production ... the implied stock build is currently 2-million bpd,” the IEA said. Output around the world has swelled since the middle of the year, while an escalating trade dispute between the US and China threatens global economic growth. Since early October, the oil price has fallen by a quart...
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