IEA sees 'hefty' oil supply cushion building in 1H 2020

Author: Justin Low | Category: News

IEA comments in its latest report on the oil market

The agency says that it expects global oil markets to remain "calm" next year as soaring non-OPEC production and high inventories will keep consumers comfortably supplied.

Adding that non-OPEC supplies will increase by 2.3 mil bpd next year, almost twice the expansion in global oil demand. That is a 100k bpd upgrade from its estimate last month.

"The calmness is supported by a well-supplied market and high inventories. This may continue into 2020 because non-OPEC countries will grow their production significantly.

The hefty supply cushion that is likely to build up during the first half of next year will offer cold comfort to OPEC+ ministers gathering in Vienna at the start of next month.

However, a continuously well-supplied market will lend support to a fragile global economy."

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