Oil supply exceeded demand by 0.9 mln bpd in H1-2019: IEA
Oil supply exceed demand by roughly 0.9 million barrels per day (bpd) in the first half of 2019, adding to the huge stock builds seen in H2 last year, the International Energy Agency said in its monthly report.
The Paris-based agency anticipated an oversupplied market next year, despite the OPEC+ agreement to extend their ongoing output reduction.
Last week, OPEC and allies, including Russia, have agreed to extend their oil output cut pact to March 2020 to avoid a supply glut.
Global demand growth is expected to accelerate from an “exceptionally weak” 310,000 bpd in the first quarter of 2019 and 800,000 bpd in the second quarter, to reach 1.8 million bpd in H2-2019, the IEA said.
For 2020, the energy agency said the growth pace would average 1.4 million bpd, compared to 1.2 million bpd this year.