IEA says OPEC+ cuts do not change the fundamental outlook of an oversupplied market

Author: Justin Low | Category: News

IEA comments in its latest report on the oil market

Oil
  • Global oil stockpiles swelled surprisingly in 1H 2019
  • Consumption proved far weaker than expected, outlook for 2020 also deteriorating
  • OPEC may need to reduce output to lowest in 17 years to balance market
The agency also says that they predict the surplus to add to the stock-builds seen in 2H 2018 and notes that 'any rebalancing seems to have moved further into the future'.

This just mainly reaffirms the narrative that the latest decision by OPEC+ to extend their output cuts deal will not be sufficient and more production cuts are needed on their part if they want to try and curb the issue at hand.
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