6/14/2019, 10:54 AM (Source: TeleTrader)
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IEA: Global oil supply to surpass demand in 2020

International Energy Agency (IEA) said that the global oil demand will increase more than the global supply next year, according to its monthly report released on Friday. "A clear message from our first look at 2020 is that there is plenty of non-OPEC supply growth available to meet any likely level of demand, assuming no major geopolitical shock, and the OPEC countries are sitting on 3.2 million b/d of spare capacity," the report noted.

The global oil demand is expected to rise to 1.4 million barrels per day in 2020 while the production increase is forecasted at 2.4 million barrels per day next year. The agency noted that the main reason for the substantial increase in global oil supply, despite the OPEC production cap efforts, is the continuous shale boom in the United States.

Meanwhile, world demand forecast for this year has been cut for the second consecutive month due to the ongoing trade concerns and rising fears of a global economic slowdown.

Breaking the News / VK