U.S crude gains, slowing global economy challenge oil market in 2019 - IEA
By Dmitry Zhdannikov
LONDON, Jan 18 (Reuters) - U.S. oil production growth
combined with a slowing global economy will put oil prices under
downward pressure in 2019, challenging OPEC's resolve to support
the market with output cuts, the International Energy Agency
said on Friday.
The IEA, which coordinates the energy policies of industrial
nations, said it was keeping its estimate of oil demand growth
for this year unchanged at 1.4 million barrels per day, close to
"The impact of higher oil prices in 2018 is fading, which
will help offset lower economic growth," the Paris-based IEA
said in its monthly report.
Oil rallied above $85 per barrel in the second half
of 2018 on concern about lower supplies from Iran due to new
But crude fell towards $50 at the end of 2018 due to an
economic slowdown and rising U.S. supply, prompting producer
group OPEC to cut output in an effort to keep prices above $60.
The IEA said global oil supply last month fell by 950,000
bpd, roughly 1 percent, led by lower OPEC output even before the
organisation's new supply-cutting pact took effect in January.
The IEA said non-OPEC production growth was set to slow to
1.6 million bpd in 2019 after record annual gains of 2.6 million
bpd in 2018.
However, the United States will continue to surprise on the
"The United States, already the biggest liquids supplier,
will reinforce its leadership as the world's number one crude
producer. By the middle of the year, U.S. crude output will
probably be more than the capacity of either Saudi Arabia or
Russia," the IEA said.
(Reporting by Dmitry Zhdannikov; Editing by Dale Hudson)
© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.