OPEC+ Oil Supply Cuts Won’t Prevent Surplus in 2020, IEA Says
- Inventories will swell by 700,000 b/d in 1Q even with full cut
- Extra OPEC+ curbs equate to 532,000 b/d cut from current level
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Global oil markets still face a surplus next year even if OPEC and its partners deliver newly-announced production cuts in full, the International Energy Agency said.
Oil inventories may accumulate by 700,000 barrels a day in the first quarter even if the Organization of Petroleum Exporting Countries and its allies implement the entire cutback of 2.1 million barrels a day agreed last week, the IEA said in a monthly report. Supplies outside the group, led by U.S. shale, continue to grow much faster than world demand.