IEA Sees Global Oil Supply Tightening More Quickly In 2019

The global oil market could move into deficit sooner than expected thanks to OPEC’s output agreement with Russia and to Canada’s decision to cut supply, the International Energy Agency said on Thursday. The Paris-based IEA kept its 2019 forecast for global oil demand growth at 1.4 million barrels per day, unchanged from its projection last month, and said it expected growth of 1.3 million bpd this year. Uncertainty over the global economy stemming from U.S.-China trade tensions could undermine oil consumption next year, as growth in supply gathers pace. “For 2019, our demand growth outlook remains at 1.4 million bpd even though oil prices have fallen back considerably since the early October peak,” the IEA said.
"Some of the support provided by lower prices will be offset by weaker economic growth globally, and particularly in some emerging economies.” The Organization of the Petroleum Exporting Countries agreed last week with Russia, Oman and other producers to cut oil output by 1.2 million bpd from January to stem a build-up in unused inventories of fuel. The decision by the government of Canada’s Alberta province to force oil producers to curtail supply will bring the largest reduction to crude output next year, the IEA said. Alberta crude and oil sands output will drop by 325,000 bpd from January to force down vast inventories that built up because of pipeline capacity constraints.

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The oil runs out in less than 50 years, so yeah I bet it’ll tighten up....

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Prices are up, meanwhile, so....

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Will OPEC's cuts be enough to finally balance the oil market in 2019? According to IEA, it's too early to tell that...

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I read somewhere that the last time the oil market “balanced” for more than a few months was in September 1973.

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I have got to say - oil markets are a wild ride! From up to down, from minute to minute

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18 hours ago, pinto said:

The oil runs out in less than 50 years, so yeah I bet it’ll tighten up....

...and coal runs out in 150 years which might explain some of the emphasis on producing more battery powered vehicles.

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clean coal tho.

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