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11/13, 3:51 PM (Source: TeleTrader)
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No cause for alarm, oil demand to remain stable - Barkindo

OPEC's Secretary-General Mohammad Barkindo brushed off concerns regarding the demand for oil in 2020, saying that current estimates indicate a "potential for an upside swing" in demand. Also, he reminded, the OPEC+ agreement remains in place until March 2020 and expressed hope that it will continue to keep the supply in check throughout the year.

However, "sharp downward revision" of supply is likely to be seen going into 2020, especially from the shale output of the United States, whose shale extracting companies predict the growth of only 300-400,000 barrels per day, which is significantly lower than OPEC's "optimistic estimates."

Turning to geopolitics, he said he had "hoped the United States and China would reach an agreement to end the trade war" as it would remove a "bleak cloud" over the oil market. "No one in OPEC+ wants to return to where we came from during oil prices downturn," Barkindo underlined, noting however that "fundamentals of the global economy remain strong" and there is "no sign" of economic recession on the horizon.

Breaking the News / GG