Tuesday, 26 November 2019

IEA Warns Of A Looming Oil Glut Ahead Of OPEC Meeting | OilPrice.com

IEA Warns Of A Looming Oil Glut Ahead Of OPEC Meeting | OilPrice.com:

Strong oil supply growth from non-OPEC countries puts a lot of pressure on OPEC and its Russia-led partners to act, and they will hopefully make the right decision for themselves and for the still ‘very fragile’ global economy, Fatih Birol, the Executive Director of the International Energy Agency (IEA), told Reuters in an interview on Tuesday.

OPEC and its non-OPEC allies are meeting in Vienna next week to discuss the state of the global oil market and the fate of their production cut deal. The meeting comes as global oil demand growth has slowed down this year amid weakening economic growth and the continued trade spat between the two biggest economies in the world, the United States and China.

The meeting is expected to decide how the OPEC+ group of partners will proceed with the production cuts that are currently in place until March 2020. The market expects the group to come up with a decision next week—either to roll over the cuts, or to deepen them, otherwise analysts expect a sell-off in oil.

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