UPDATE 3-Oil market to remain oversupplied despite deepening OPEC+ cuts -IEA

(Adds OPEC forecast for 2020 deficit)
By Noah Browning
LONDON, Dec 12 (Reuters) - Global oil inventories could rise
sharply despite OPEC and its allies deepening their output cuts
and slowing U.S. production growth, the International Energy
Agency (IEA) said on Thursday.
"Despite the additional curbs ... and a reduction in our
forecast of 2020 non-OPEC supply growth to 2.1 million barrels
per day (bpd), global oil inventories could build by 700,000 bpd
in Q1 2020," the Paris-based IEA said in a monthly report.
The Organization of the Petroleum Exporting Countries (OPEC)
and others including Russia - the OPEC+ group of producers -
agreed last week to rein in output by an extra 500,000 bpd in
the first quarter of 2020 to balance the market and support
prices, but they stopped short of pledging action beyond March.
Even if OPEC+ adhered strictly to their new pact and
political troubles continued to hobble exports from Iran, Libya
and Venezuela, the IEA said that only 530,000 bpd of crude would
be withdrawn from the market compared to November production.
This contrasts with OPEC's own research which forecasts a
small deficit in the market next year due to Saudi Arabia's
supply restraint even before the latest cut agreement takes
effect. OPEC+ output is set to outstrip projected demand for its
crude by 700,000 bpd in the first half of next year and by 1
million bpd in the second half, the IEA said.
The IEA lowered its forecast for supply growth by non-OPEC
countries in 2020 by 200,000 bpd "on a continued slowdown in the
U.S., reduced expectations for Brazil and Ghana as well as
additional cuts by (OPEC's allies)".
The biggest reduction is expected to be in U.S. shale
output, where operators have been cutting spending under
investor pressure to improve returns.
The IEA estimates total U.S. oil production growth will slow
to 1.1 million bpd in 2020 from 1.6 million bpd this year.


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Demand/Supply Balance until end-2020 https://tmsnrt.rs/36pNuAv
OPEC and non-OPEC oil supply year-on-year change https://tmsnrt.rs/2LMh0Z8
Call on OPEC Crude https://tmsnrt.rs/2LMvDvI
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