OPEC urges caution, efforts to avert a glut relapse
OPEC comments in its latest monthly oil report
- Warns producers not to pump too much crude amid waning global economic growth
- 2020 global oil demand growth seen at 1.08 mil bpd (previously 1.14 mil bpd)
- The downwards forecast revision is due to the ongoing economic slowdown
The above warning comes as the bloc's production output rose by 136k bpd in August, largely driven by Saudi Arabia and Nigeria (increase of 200k bpd combined between the two).
The oil market continues to take the news in stride for the time being but this will be a real cause of concern for oil in the long-term. If the global economy continues to slow down, it will dampen oil demand and with OPEC+ production cuts being not nearly enough, it will eventually start to weigh on oil prices.