IEA says OPEC+ cuts do not change the fundamental outlook of an oversupplied market
IEA comments in its latest report on the oil market
- 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.