Send
Print
pixabay
The increase in world oil demand this year will be even weaker than expected, and will amount to only 1.1 million bpd, up to 100.4 million bpd (the forecast was lowered by 100 thousand bpd), says the IEA's monthly oil market review. Next year, it may increase to 1.3 million bpd, but this estimate was also lowered by 50 thousand bpd. In May (this is the last month for which actual data on demand is available), the indicator in annual terms decreased by 160 thousand bpd, and since the beginning of the year, demand has grown by only 520 thousand bpd. This is the minimum since 2008.
Although there is now a temporary decrease in oil surplus on the market amid a decrease in production by participants in the OPEC + transaction, other producers will soon increase supplies, so that in 2020 there will be a sufficient supply on the market, the report shows. The forecasted demand for cartel oil (calculated as the difference in supply and demand of other countries) in the third quarter will increase to 30.6 million bpd, which is 940 thousand bpd higher than the current level. However, this figure may drop to 28.4 million bps already at the beginning of 2020, the agency believes.
According to the IEA, in July the total supply of oil in the world hasn’t fallen significantly (by 60 thousand bpd to 100.2 million bpd). Yet, for the first time since the fall of 2017, year-on-year production showed a decrease 580 thousand bpd. Over the month, deliveries outside OPEC have grown by 160 thousand bpd (the year-on-year figure was higher by 1.4 million bpd). By the end of 2019, their growth will reach 1.9 million bpd (against 2.8 million bpd a year earlier), but in 2020 it will accelerate to 2.2 million bpd, the agency expects.
OPEC supplies in July fell by another 190 thousand bpd to 29.71 mln bpd, including Saudi Arabia reduced production by 120 thousand bpd (to 9.65 million bpd - the lowest since February 2015), Iran - against the backdrop of sanctions - by 50 thousand bpd (up to 2.23 million bpd), Venezuela - by 60 thousand bpd (up to 810 thousand bpd). In total, the participants in the OPEC + transaction exceeded the goals for the fifth consecutive month. In July these countries extracted 43.85 million bpd, while the agreement provides for a level of 45.46 million bpd.
source: iea.org
Although there is now a temporary decrease in oil surplus on the market amid a decrease in production by participants in the OPEC + transaction, other producers will soon increase supplies, so that in 2020 there will be a sufficient supply on the market, the report shows. The forecasted demand for cartel oil (calculated as the difference in supply and demand of other countries) in the third quarter will increase to 30.6 million bpd, which is 940 thousand bpd higher than the current level. However, this figure may drop to 28.4 million bps already at the beginning of 2020, the agency believes.
According to the IEA, in July the total supply of oil in the world hasn’t fallen significantly (by 60 thousand bpd to 100.2 million bpd). Yet, for the first time since the fall of 2017, year-on-year production showed a decrease 580 thousand bpd. Over the month, deliveries outside OPEC have grown by 160 thousand bpd (the year-on-year figure was higher by 1.4 million bpd). By the end of 2019, their growth will reach 1.9 million bpd (against 2.8 million bpd a year earlier), but in 2020 it will accelerate to 2.2 million bpd, the agency expects.
OPEC supplies in July fell by another 190 thousand bpd to 29.71 mln bpd, including Saudi Arabia reduced production by 120 thousand bpd (to 9.65 million bpd - the lowest since February 2015), Iran - against the backdrop of sanctions - by 50 thousand bpd (up to 2.23 million bpd), Venezuela - by 60 thousand bpd (up to 810 thousand bpd). In total, the participants in the OPEC + transaction exceeded the goals for the fifth consecutive month. In July these countries extracted 43.85 million bpd, while the agreement provides for a level of 45.46 million bpd.
source: iea.org
