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OPEC Sees New Oil Surplus in 2020 as U.S. Shale Surges Again

  • Demand for cartel’s crude seen falling as U.S. boosts supply
  • Group’s output is about 560,000 b/d higher than needed in 2020
A drilling rig near Encinal in Webb County, Texas. 

A drilling rig near Encinal in Webb County, Texas. 

Photographer: Eddie Seal/Bloomberg

Updated on

A week after OPEC agreed to keep oil production restrained until early next year, the group’s first forecasts for 2020 showed it faces an even longer and tougher challenge.

The Organization of Petroleum Exporting Countries, which pumps 40% of the world’s oil, estimated that it’s producing about 560,000 barrels a day more than will be needed next year as the ongoing surge in U.S. shale threatens to deliver another surplus. Supplies from producers outside the cartel will grow by more than twice as much as global oil demand, it forecast.