IEA: OPEC+ faces daunting challenging in managing the market in 2020
IEA comments in its monthly oil report
- Demand for OPEC+ crude will be 1.4 mil bpd below August production in 1H 2020
- Says halt in stockpiles is seen to be temporary
- There could be a significant increase in stockpiles in 2020
- OPEC+ producers will see surging non-OPEC oil production next year
Their view is that as non-OPEC producers step up their output next year, it will cause the market to return back to a significant surplus and that will in turn weigh on prices as stockpiles continue to build again.
IEA estimates that non-OPEC supply will increase to 2.3 million bpd next year.