8,468 Active Recruiters     Over 2 Million Candidates Globally

Advanced
  1. Keep me logged in
  2. forgot password
cancel

Checkout Jobs Basket (0)

You can checkout a maximum of 150 jobs.

Signup Better for Candidates

  • Create a free virtual CV and let recruiters find you
  • Automatically have your profile matched to suitable Oil & Gas positions
  • Link to your profile using it as a free online CV
  • Store all your employment documents to your profile for easy sending
  • Always receive feedback on positions applied for

Signup Better for Recruiters

  • Suitable candidates automatically matched to your position
  • View candidate profiles for free
  • No more waiting for candidates to respond to job advertisements
  • Only ever pay when you match a candidate to a position
  • No more cold calling and sorting through out dated CVs

IEA Says OPEC+ Cuts Won’t Prevent a Surplus in 2020

Published in Oil Industry News on Friday, 13 December 2019


Graphic for News Item: IEA Says OPEC+ Cuts Won’t Prevent a Surplus in 2020

Global oil markets still face a surplus next year even if OPEC and its partners deliver newly-announced production cuts in full, the International Energy Agency said.

Oil inventories may accumulate by 700,000 bpd in the first quarter even if the Organization of Petroleum Exporting Countries and its allies implement the entire cutback of 2.1 MMbpd agreed last week, the IEA said in a monthly report. Supplies outside the group, led by U.S. shale, continue to grow much faster than world demand.

While crude prices climbed to a 12-week high in New York after OPEC+ surprised traders with their latest intervention, they remain below $60 a barrel amid concern that the additional output curbs still won’t be enough. The U.S. briefly became a net exporter of oil three months ago, underscoring the challenge OPEC faces from America’s shale boom.

Stubborn Surplus. “The market has done its own sums and the reaction to oil’s new deal has so far been muted,” said the Paris-based agency, which advises most of the world’s major economies.

The extra OPEC+ curbs would translate into an actual reduction from current levels of 532,000 barrels a day, the IEA said. Implementing that fully may be a tall order, as some producers like Iraq and Nigeria have barely made the cutbacks they promised to enact this year.

A change to the terms of the OPEC+ agreement, which now exempts light oil known as condensate produced by the non-OPEC members, could also undermine the coalition’s efforts. Condensate production in those countries, such as Russia and Azerbaijan, has the potential to increased from its current level of about 1.5 MMbpd, according to the IEA.

Saudi Arabia, OPEC’s biggest member, has already made considerable progress in fulfilling its output commitments, including additional voluntary reductions announced at the close of the OPEC meeting on Dec. 6. The kingdom pumped 9.9 MMbpd in November, the IEA estimated.

“The overall effectiveness of the OPEC+ agreement depends on the willingness of all its parties to fully comply, including those whose compliance so far has been less rigorous,” the agency said.

OPEC and its partners are getting some solace from a recent recovery in oil demand. Global consumption increased at the strongest rate in a year during the third quarter, expanding by 900,000 bpd, according to the report. That’s almost twice the pace seen in the second quarter.

Demand is set to accelerate further in 2020, when it will expand by 1.2 MMbpd -- about 1.2% -- to average 101.5 MMbpd, the IEA predicts.

OPEC may also be reassured that supply from some of its rivals, such as the U.S., Brazil and Ghana, is increasing less quickly than the IEA previously forecast. The agency lowered its projections for non-OPEC production growth in 2020 by about 200,000 bpd.

Yet supplies outside OPEC will nonetheless expand much more vigorously than world demand, swelling by 2.1 MMbpd next year as a new tide of American shale-oil is joined by offshore projects once considered unviable in an era of constrained prices, from Brazil, Norway and Guyana.

As a result, the surplus in global markets may swell to as much as 1 million barrels a day during the second quarter, the agency said. That poses a considerable challenge for the cartel and its allies, who will meet again in early March to consider their next move.

Source: www.worldoil.com

Please leave comments and feedback below





Tags

OPEC Oil and Gas, Iran Oil and Gas, OPEC Oil and Gas News, Oil and Gas News








Oil and Gas News Archive


Latest Oil & Gas News







Featured Companies

  • View All JobsOMPA

    Offshore Marine People & Academy (OMPA) is a global provider of personnel and training to the renewables, oil & gas, telecommunications and marine industries.

    With over 15 years' industry experience, we work with candidates to match them to the right roles and equip them with the skills and knowledge needed to succeed. Our job is to exceed your expectations.

    Visit us online: offshorempa.com

  • View All JobsChronos Oil and Gas

    Chronos Oil and Gas is one of the fastest growing and best placed recruitment agencies in the sector.

    With over 300,000 candidates on our database and an international team of specialist recruiters we work with clients to staff major projects around the world.

    Register your CV at www.chronosoilandgas.com

  • View All JobsNatural Resources

    Natural Resources is a UK based recruitment company providing personnel of all disciplines and nationalities worldwide.

    We represent clients and candidates at all levels who operate globally within oil & gas, renewables, nuclear, power, mining, marine, drilling, construction and petrochemicals. Our client base includes energy and construction.

    Visit Natural Resources at natural-resources.com