OPEC projects to tighter oil market in 2019

OPEC projects to tighter oil market in 2019

WTI: Downside opening up towards $ 63.50 amid rising US supplies

Brent crude oil futures rallied 69 cents to $71.52 a barrel.

Oil prices on Friday as involuntary supply cuts from Venezuela and Iran plus conflict in Libya supported perceptions of a tightening crude market, while upbeat Chinese economic data eased concerns about waning crude demand.

Output declines in OPEC because of the supply pact, plus the sanctions on Venezuela and Iran, have exceeded expectations.

But the group said that the market remained oversupplied and warned of slowing demand growth, according to S&P Global Platts.

"Oil prices at $70/bbl for Brent are less comfortable for consumers than they were at the start of the year", the reports says. Demand for OPEC crude in 2018 averaged 31.35 million bpd.

OPEC also revised down non-OPEC oil supply growth in 2019 by 60,000 bpd "due to extended maintenance in Kazakhstan, Brazil and Canada".

On Thursday, the 11th of April 2019, both U.S. and United Kingdom crude fell more than one percent after sources had revealed that the OPEC, a 14-nation pact of petroleum exporting nations, had been giving a second thought over their production cut policy until the end of 2019.

According to the report, only time will tell if the EIA current demand forecast (1.4 mb/d) proves accurate, but the "risks are now to the downside".

Russian Federation is also ready to boost supplies.

Saudi output dropped to its lowest in over two years, boosting compliance with supply cuts to 153 percent, according to IEA estimates.

Angola's oil production saw a marginal increase last March of 7000 barrels per day (bpd) to 1.454 million bpd, according to secondary sources, the Organization of Petroleum Exporting Countries (OPEC) said.

The rig count fell for the past four months as independent exploration and production companies cut spending on new drilling to focus on earnings growth instead of increased output. Though the rig count itself is a lagging indicator, with additional production showing up with a five-to-six-week latency after new drilling is reported, it is an important gauge to market participants trying to determine if USA output is surging again.

At the same time, the International Energy Agency (IEA) reported that OPEC production fell 550,000 bpd.

Altre Notizie