- Analytics
- News and Tools
- Market News
- Oil markets could face oversupply in 2020 - IEA
Oil markets could face oversupply in 2020 - IEA
Oil markets are expected to face excess supplies in 2020 due to a production boost amid weak demand growth, the director for energy markets and security at the International Energy Agency said Tuesday.
“Overall, we will continue to see a well supplied market in 2020,” said Keisuke Sadamori.
“Unless other things change, we will see a surplus probably, unless there is very strong demand growth recovery,” Sadamori told CNBC.
In its latest monthly report, the Paris-based agency cut its oil demand growth figure by 100,000 barrels a day for 2019 and 2020. Oil demand is expected grow at a “still solid” 1.2 million barrels a day in 2020, IEA said in the report.
Global macroeconomic concerns such as the U.S.-China trade dispute and the developments surrounding Brexit — the UK’s exit from the European Union trade bloc — are issues clouding the oil market outlook, said Sadamori.
The Organization of the Petroleum Exporting Countries, and other producers including Russia, have implemented an output cut by 1.2 million barrels per day since January in a bid to support the market.
However, oil supplies this year have been boosted by non-OPEC members such as the U.S. in shale oil production. Brazil and Norway will also produce more oil next year, said Sadamori.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
