Mubasher: The Organization of the Petroleum Exporting Countries (OPEC) on Thursday said that oil markets would see a smaller surplus next year, but it still expected demand for its output to drop, as its rivals boost their production.
OPEC said its demand for its crude would be at an average of 29.58 million barrels per day (bpd) next year, 1.12 million bpd less than this year, OPEC’s research division said in its monthly oil market report (OMR).
The weakening demand could add to the case for the producer club and non-affiliated producers, including Russia, an alliance known as OPEC+, to extend their supply restraints in place since January at a meeting on 5 and 6 December.
However, the global growth and oil demand outlook were kept unchanged.
Global economic growth forecast were kept at 3% for this year and next.
“Signs of improving trade relations between the US and China, a potential agreement on Brexit after the UK’s general election, fiscal stimulus in Japan, and a stabilisation of the downward slope in major emerging economies could stabilize growth at the current forecast level,” OPEC said in the report.
Forecast for growth for non-OPEC supply in 2020 is expected to come in at 2.17 million bpd, 40,000 bpd lower than previously projected.
By 2:52 pm GMT, US Nymex crude futures rose by 0.77% to $57.56 per barrel (pb), while global benchmark Brent futures climbed by 0.95% to $62.96 pb.