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7/12, 10:26 AM (Source: TeleTrader)
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IEA expects oil oversupply despite OPEC+ output cuts

The International Energy Agency (IEA) said in its monthly report on Friday that it expects a glut in the global oil market despite OPEC's and other major producers' efforts to balance the markets by extending output cuts of 1.2 million barrels per day by another nine months.

"The widely-anticipated decision by OPEC+ ministers to extend their output agreement to March 2020 provides guidance but it does not change the fundamental outlook of an oversupplied market," IEA stated.

According to the report, global crude supply in the first half of 2019 exceeded demand by 0.9 million barrels. "This surplus adds to the huge stock builds seen in the second half of 2018 when oil production surged just as demand growth started to falter," the Paris-based organization noted. "Clearly, market tightness is not an issue for the time being and any re-balancing seems to have moved further into the future," it added.

Breaking the News / NP