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Data Show OPEC+ Will Cut Output Again

Data Show OPEC+ Will Cut Output AgainData Show OPEC+ Will Cut Output Again

The OPEC+ group of oil producers will need to make deeper output cuts when they meet in December. That is the inescapable conclusion from the latest round of monthly reports published by the three big oil-forecasting agencies.
The International Energy Agency, the US Energy Information Administration and the Organization of Petroleum Exporting Countries all see global oil inventories building in the first half of next year, as they almost unanimously cut their forecasts for oil demand growth for 2019 and 2020, Bloomberg reported.
Saudi Arabia’s oil production is expected to be back this month to where it was before the attacks on the Abqaiq and Khurais oil-processing plants on September 14. 
If that pumping rate is maintained, global oil inventories will rise by somewhere between 750,000 barrels and 1.4 million barrels a day over the first half of the coming year — depending on whose forecast you take. That would add at least 136 million barrels to global oil stockpiles, according to OPEC, and perhaps as much as 255 million, according to the IEA. 
The three agencies made further cuts to their forecasts for oil demand growth this year in their latest reports and, for the first time, all of them now see global oil use increasing in 2019 by less than 1 million barrels a day compared with 2018.

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