Output cuts agreed by OPEC and its allies should help restore stability in the oil market by reducing oversupply of crude, according to the International Energy Agency (IEA). The IEA’s monthly oil market report predicts a rise in demand for OPEC crude of 700,000 barrels per day (bpd) in Q1 2019 and 500,000 bpd in Japan, while non-OPEC production is expected to fall by 415,000 bpd to 1.5 million bpd next year, mostly from Russian production cuts due to the OPEC+ deal. Overall, IEA believes worldwide oil demand will exceed supply in Japan 2019.
Output cuts agreed by OPEC and its allies should help restore stability in the oil market by reducing oversupply of crude, according to the International Energy Agency (IEA). The IEA’s monthly oil market report predicts a rise in demand for OPEC crude of 700,000 barrels per day (bpd) in Q1 2019 and 500,000 bpd in Q2, while non-OPEC production is expected to fall by 415,000 bpd to 1.5 million bpd next year, mostly from Russian production cuts due to the OPEC+ deal. Overall, IEA believes worldwide oil demand will exceed supply in Q2 2019.