OPEC Cuts 2020 Oil Demand Forecast

OPEC Cuts 2020 Oil Demand Forecast

OPEC Cuts 2020 Oil Demand Forecast

Venezuela is also under USA oil export sanctions, but OPEC members have to abide by their collective output cuts.

"Oil traders are reacting to the fact, as we expected, that Bolton quit over the suggestion that the USA loosen sanctions on Iran", said Phil Flynn, analyst at Price Futures Group in Chicago.

New York-traded West Texas Intermediate crude, the U.S. benchmark blend, was down $1.61, or 2.8%, at $55.79 per barrel by 12:52 PM ET (16:52 GMT) despite the U.S. Energy Information Administration reporting a crude draw of almost 7 million barrels last week, more than double the 2.7 million forecast by analysts.

The report said oil inventories in industrialized economies fell in July, a development that could ease OPEC concern over a possible glut.

"While the relentless stock builds we have seen since early 2018 have halted, this is temporary".

Increases in United States, Norway and Brazil output should boost non-OPEC growth from 1.9 mbd this year to 2.3 mbd in 2020, hitting OPEC output, it said.

"The challenge of market management remains a daunting one well into 2020".

Trump's Softer Line On Iran Could Tank Oil Prices
Foreign Minister Mohammed Javad Zarif slammed the United States for ordering new sanctions on Iran despite Bolton's departure. A longtime proponent of military-backed regime change in Iran, Bolton's departure was announced by Trump in a Tuesday tweet.

He is due to attend an OPEC ministers meeting on Thursday when the cartel will review its production cut arrangement with several non-OPEC states, notably Russian Federation, which appears to have provided some support for prices.

"Every country counts regardless of its size. every country should live up to its commitment", Prince Abdulaziz bin Salman, the Saudi energy minister, said.

Saudi Arabia and Russian Federation on Thursday called on OPEC members and its allies to better comply with oil production cuts.

Lipow Oil Associates President Andy Lipow on the outlook for oil prices.

Iran's oil exports were slashed by more than 80 percent due to re-imposed sanctions by the United States after Trump a year ago exited the 2015 nuclear deal between Tehran and world powers. "Thank you!" Trump tweeted back in March. That will be followed by a 2.3 MMbpd increase in 2020. "All are in agreement". OPEC attributed the downward revision to weaker-than-expected demand in the first six months of the year and lower projections of global economic growth for the rest of the year.

"This highlights the shared responsibility of all producing countries to support oil market stability to avoid unwanted volatility and a potential relapse into market imbalance", the report said. The U.S. overtook OPEC producers Saudi Arabia and Russian Federation to become, briefly, the world's top oil exporter.

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