OPEC cuts outlook for oil demand

Source: Xinhua | 2019-02-13

OPEC cut its forecast for 2019 world oil demand yesterday due to slowing economies and expectations of faster supply growth from rivals, underlining its challenge to prevent a surplus even as it starts new production cuts.

In a monthly report, the Organization of the Petroleum Exporting Countries lowered its forecast for 2019 economic growth and said demand for its crude would fall to 30.59 million barrels per day, 240,000 bpd less than predicted last month.

OPEC, Russia and other non-OPEC producers, an alliance known as OPEC+, agreed in December to cut supply by 1.2 million bpd from January 1 to prevent excess supply building up. OPEC’s share of that cut is 800,000 bpd.

In the report, OPEC said its oil output fell 797,000 bpd month on month to 30.806 million bpd in January — an 86 percent compliance with its pledged cuts.