OPEC on Thursday forecast world demand for its crude will decline next year as rivals pump more, pointing to the return of a surplus despite an OPEC-led pact to restrain supplies.
Giving its first 2020 forecasts in a monthly report, the Organization of the Petroleum Exporting Countries said the world would need 29.27 million barrels per day (bpd) of crude from its 14 members next year, down 1.34 million bpd from this year.
The drop in demand for OPEC crude highlights the sustained boost that OPEC’s policy to support prices by supply cuts is giving to U.S. shale and other rival supply. This potentially gives U.S. President Donald Trump more room to keep up sanctions on OPEC members Iran and Venezuela.
“U.S. tight crude production is anticipated to continue to grow as new pipelines will allow more Permian crude to flow to the U.S. Gulf Coast export hub,” OPEC said, using another term for shale oil. Read More
Latest posts by Reuters (see all)
- OPEC cuts 2020 oil demand forecast, urges effort to avert new glut - September 12, 2019
- Cost of India refinery project with Aramco to rise: oil minister - September 10, 2019
- BP aims to sell more U.S. crude to Asia, boost LNG supplies in early 2020s - September 6, 2019