Opec could roll over its regime of production cuts until the end of 2020 as demand from the top oil-consuming countries such as the US, China and India continues to slow, said a report from Jadwa Investment in Riyadh.
“Partly as a result of global trade tensions, Opec now expects to see oil demand growth from US, China [and India] declining on a yearly basis in 2020,” the report said. “Whereas in 2019, the above three countries’ contribution to yearly demand growth is expected to make up 67 per cent of the total, this will decline to 56 per cent in 2020.”
Jadwa Investment’s report, quoting data from Energy Information Administration, also said US oil production will rise to 13 million barrels per day (bpd) early next year from the 12 million bpd level reached recently, adding to the downward pressure on oil prices. Read more