OPEC sees slower 2019 de­mand growth, warns on econ­omy

Global Times - - Biz Markets -

The Or­ga­ni­za­tion of the Pe­tro­leum Ex­port­ing Coun­tries (OPEC) fur­ther trimmed its fore­cast for 2019 global oil de­mand growth and said the risk to the eco­nomic out­look was skewed to the down­side, adding a new chal­lenge to the group’s ef­forts to sup­port the mar­ket next year.

In a monthly re­port, OPEC said world oil de­mand next year would rise by 1.41 mil­lion bar­rels per day (bpd), 20,000 bpd less than last month and the sec­ond con­sec­u­tive re­duc­tion in the fore­cast.

The re­port pro­vides fur­ther in­di­ca­tion that the rapid oil de­mand that helped OPEC and its al­lies get rid of a sup­ply glut will mod­er­ate in 2019. OPEC last month said global growth faced “nu­mer­ous chal­lenges,” although its lat­est re­port sug­gests con­cern about them has deep­ened.

“Ris­ing chal­lenges in some emerg­ing and de­vel­op­ing economies are skew­ing the cur­rent global eco­nomic growth risk fore­cast to the down­side,” OPEC said in the re­port. “Ris­ing trade ten­sions and the con­se­quences of fur­ther po­ten­tial mon­e­tary tight­en­ing by G4 cen­tral banks, in com­bi­na­tion with ris­ing global debt lev­els, are ad­di­tional con­cerns.”

Crude briefly pared gains af­ter the OPEC re­port was re­leased but later ral­lied to trade above $80 a bar­rel, a level reached ear­lier this year for the first time since 2014, sup­ported by ex­pec­ta­tions for a fur­ther drop in Ira­nian ex­ports.

OPEC and a group of non-OPEC coun­tries agreed on June 22-23 to re­turn to 100 per­cent com­pli­ance with oil out­put cuts that be­gan in Jan­uary 2017 af­ter months of un­der­pro­duc­tion by Venezuela, while oth­ers pushed ad­her­ence above 160 per­cent.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.