OPEC Sees New Oil Surplus in 2020 as U.S. Shale Keeps Surging - Bloomberg

OPEC Sees New Oil Surplus in 2020 as U.S. Shale Keeps Surging - Bloomberg:

A week after OPEC agreed to keep oil production restrained until early next year, the group’s first forecasts for 2020 showed it faces an even longer and tougher challenge.

The Organization of Petroleum Exporting Countries, which pumps 40% of the world’s oil, estimated that it’s producing about 560,000 barrels a day more than will be needed next year as the ongoing surge in U.S. shale threatens to deliver another surplus. Supplies from the cartel’s rivals will grow by more than twice as much as global oil demand, it forecast.

Saudi Arabia and its partners agreed in Vienna last week to continue the production cutbacks they’ve made into the first quarter of 2020, to balance markets against a faltering global economy and record American output. Crude prices, trading near $67 a barrel in London, remain below the levels most OPEC nations need to cover government spending.