Mubasher: The Organization of Petroleum Exporting Countries (OPEC) warned on Tuesday that an oil supply glut could appear in the next year as global economy slows and non-OPEC producers pump supplies more quickly.

Concerned about dropping prices and rising supplies, OPEC is talking again of curbing production a few months after raising it, building a case for supply cuts at a meeting on 6 December to set policy for the year ahead.

“Although the oil market has reached a balance now, the forecasts for 2019 for non-OPEC supply growth indicate higher volumes outpacing the expansion in world oil demand, leading to widening excess supply in the market,” OPEC said in its monthly Oil Market Report (OMR).

The group slashed its forecast for world demand for oil for the fourth time in a row. Global demand is expected to rise next year by 1.29 million barrels per day (bpd), 70,000 lower than it predicted last month.

Meanwhile, OPEC saw that supplies from rival producers would grow by 2.23 million bpd, revising its previous projection by 120,000 bpd.

“The recent downward revision to the global economic growth forecast and associated uncertainties confirm the emerging pressure on oil demand observed in recent months,” the group said.