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IEA sees oil market oversupplied in 2019 on U.S. production

Published 12/07/2019, 09:00
© Reuters.

LONDON, July 12 (Reuters) - Surging U.S. oil output will
outpace sluggish global demand and lead to a large stocks build
around the world in the next nine months, the International
Energy Agency (IEA) said on Friday.
The forecasts appear to predict the need for producer club
OPEC and its allies to reduce production to balance the market
despite extending their existing pact, forecasting a fall in
demand for OPEC crude to only 28 million barrels per day (bpd)
in early 2020.
"Market tightness is not an issue for the time being and any
rebalancing seems to have moved further into the future," the
IEA said in its monthly report.
"Clearly, this presents a major challenge to those who have
taken on the task of market management," it added, referring to
the Organization of the Petroleum Exporting Countries and
producer allies such as Russia.


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