IEA: Global oil market to move to deficit by Q2 2019

Economy 12/13/2018, 10:27 AM
IEA: Global oil market to move to deficit by Q2 2019

International Energy Agency (IEA) stated on Thursday that it expects the global oil market to move into deficit in the second quarter of 2019 if the Organization of the Petroleum Exporting Countries (OPEC) and other major oil producers comply in full with the agreed production caps, according to its official report. The agency noted that the joint collaboration between main crude exporters Russia and Saudi Arabia remains "the basis of production management" while the US also plays an important role in global oil supply levels.

According to the IEA, the US will have a bigger effect on the oil market with its continuous growth in crude output. "While the U.S. was not present in Vienna, nobody could ignore its growing influence," the report said. The US, alongside with Russia and Saudi Arabia "whose total liquids production now comprises about 40 percent of the global total, are the dominant players."

The agency also stated that the oil demand growth for this year and the next remains at 1.3 million barrels per day and 1.4 million barrels per day respectively.

Breaking the News / VK


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