The International Energy Agency (IEA) said in a report Wednesday that even if OPEC cuts production and the United States imposes sanctions on Venezuela and Iran, it will be difficult for the global oil market to absorb the fast-growing crude oil supply outside OPEC this year, Reuters reported in London.
The IEA maintained its demand growth forecast for 2019, unchanged from the previous report (released in January), which still stands at 1.4 million barrels a day.
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“The drop in oil prices and the start-up of Sinopec and American Petrochemical projects are supporting this trend, but the slowdown in global economic growth will limit any upside space,” the IEA said.
The IEA raised its estimate of growth in crude oil supply outside OPEC from 1.6 million barrels a day to 1.8 million barrels a day in 2019.
The agency also downgraded its forecast for OPEC’s crude oil demand. OPEC has pledged to reduce OPEC’s crude oil production by 800,000 barrels a day this year as part of an agreement with other non-OPEC producers such as Russia, Oman and Kazakhstan.
According to current forecasts, OPEC crude oil production in 2019 is 30.7 million barrels per day, lower than the last estimate of 31.6 million barrels per day by the International Energy Agency in January.
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