OPEC Report: Lower Oil Demand in 2019

OPEC Report: Lower Oil Demand in 2019

Saudi Arabia replaced Iraq as top oil supplier to India in July after a gap of more than a year, according to data from industry and shipping sources, as a higher intake of Iranian oil ahead of U.S. sanctions altered trade routes.

OPEC expects that average oil production in Russian Federation will be 11.15mn barrels per day in 2018 and 11.17mn barrels daily in 2019.

Opec said Monday it expects global oil demand growth to slow this year by 20,000 barrels per day (Bpd), from its forecast last month, due to weaker-than-expected consumption data from Latin America and the Middle East.

June's OPEC meeting ended with a commitment for just under 1 million b/d of increased output, supported by Saudi Arabia and Russian Federation. Even with the July cutback, Saudi Arabia's output remains higher than the 2017 yearly average and higher than either the first or second quarter average this year.

In addition, OPEC reduced its projection for global oil demand growth for this year by 20,000 to 1.64 million bpd, while lowering the forecast for the next year by 20,000 to 1.43 million bpd. Figures OPEC collects from secondary sources published in the report also showed a Saudi cut, which offset increases in other nations such as Kuwait and Nigeria.




OPEC agreed in June to raise output at a nominal increase of 1 million barrels a day (bpd) amid pressure from the U.S.to decrease prices.

US production growth in 2018 is now expected to rise by 1.69 million barrels a day, down by 10,000 from last month's forecast.

The cartel estimated 2018 non-OPEC supply rose by 73,000 barrels a day to 59.62 million.

This was also in line with the 1.4 million-barrel drop in the previous week ended August 3, which put crude inventories at 407.4 million barrels. Demand in 2019 is now estimated at 32 million barrels a day, down by around 800,000 from the 2018 level and by 200,000 compared to last month's estimate. Since the end of 2016, when Opec moved to stabilize oil markets and lift oil prices, Brent has risen 60%, to $75 a barrel, and the price of WTI has jumped by roughly 55%, to just above $70/Bbl.

Meanwhile, West Texas Intermediate rose by 28 cents, or 0.42 percent, to Dollars 67.48, while Brent crude gained 22 cents, or 0.30 percent, to USD 72.83 per barrel.

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