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Oil Surplus Makes Surprise Return Despite OPEC Cuts, IEA Says

  • Supply exceeded demand by 900,000 barrels a day in first half
  • OPEC may need to cut output to 17-year low to balance market
Russian Oil Drilling And Pumping Operations At Tatneft OAO Oilfield
Photographer: Andrey Rudakov

Global oil stockpiles swelled surprisingly in the first half of this year as production cuts by OPEC and its partners failed to prevent the return of a surplus, the International Energy Agency said.

World supply exceeded demand at a rate of 900,000 barrels a day during the first six months of 2019 as consumption proved far weaker than expected amid a faltering economy, the IEA said. With the outlook for 2020 also deteriorating, the Organization of Petroleum Exporting Countries may need to reduce output to the lowest in 17 years to keep markets in balance, the agency predicted.