OPEC deal won’t alter fundamental outlook for oil market: IEA
PARIS, July 12: The recent decision by oil producing countries to prolong cuts in output will not fundamentally change the outlook for a market that is heavily oversupplied, the IEA said on Friday.
"The widely-anticipated decision by OPEC+ ministers to extend their output agreement to March 2020 provides guidance but it does not change the fundamental outlook of an oversupplied market," the International Energy Agency said in its latest monthly report.
At a meeting two weeks ago in Vienna, OPEC countries and other oil producers such as Russia agreed to prolong by nine months daily output cuts aimed at supporting prices and soaking up excess supplies.
But supply is currently well in excess of demand, said the Paris-based institution that provides advice to oil-consuming nations.
"The main message of this report is that in the first half of 2019, oil supply has exceeded demand by 0.9 million barrels per day," the IEA said.
According to the agency's latest data, there was a global surplus in the second quarter of 0.5 million barrels per day, compared to previous expectations of a deficit of about the same amount. -AFP