Monday 20 January 2020

Somebody Big Has Called This Year’s Oil Market Completely Wrong - Bloomberg

Somebody Big Has Called This Year’s Oil Market Completely Wrong - Bloomberg:

The world’s three biggest oil-market forecasters are split on what’s going to happen with supply and demand this year — and at least one of them is going to be proved flat wrong.

That’s the bottom line from a comparison of supply-and-demand forecasts provided by OPEC, the International Energy Agency in Paris, and the U.S. Energy Information Administration. The Organization of Petroleum Exporting Countries agreed in December to deepen output curbs until the end of March.

OPEC’s own research team sees that pact continuing to drain global stockpiles throughout 2020. By contrast, the IEA and EIA see inventory levels rising -- even if the deal gets implemented in full. And even if were to be extended for the entirety of 2020.

The OPEC+ group agreed in December to lower their combined output target by a further 500,000 barrels a day, plus a voluntary additional reduction of 400,000 barrels a day from Saudi Arabia, which depends on everybody else meeting their targets.


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