International Energy Agency: Oil Supply Will Struggle to Meet Demand in 2019 and 2020
The International Energy Agency has reported that oil supply exceeded demand by 0.9 million barrels a day in the first half of 2019, CNBC writes Friday, July 12.
The head of the oil industry and markets division at the agency, Neil Atkinson, has also told CNBC that they expect the conditions of oversupply to last until the end of the year and continue into 2020.
The IEA has explained its gloomy outlook, in part, by the growth of the oil industry in the U.S., as well as “some other countries.”
According to reports back in December 2018, the Organization of Petroleum Exporting Countries, together with Russia, planned to keep a combined 1.2 million barrels of oil off the market for the next six months. In its Friday article, CNBC has claimed that they were forced to do so by the oversaturation of the market.
On June 29, Reuters reported that Russia and Saudi Arabia agreed to extend the decreased oil output deal until March 2020.
As of press time, the benchmark Brent oil futures are trading at $66.84, up by 0.48% on the day.