EIA: OPEC+ oil output cuts to remain in place through end-2019

Baku, Azerbaijan, March 13

By Leman Zeynalova – Trend:

OPEC+ oil output cuts will remain in place through end-2019, Trend reports citing the March Short-Term Energy Outlook (STEO) of the US Energy Information Administration (EIA).

Notwithstanding the strong draw in February, EIA forecasts that global liquid fuels inventories will rise by 0.2 million b/d in 2019 and by 0.4 million b/d in 2020.

The March STEO’s expected inventory builds in both years are lower than the forecast in last month’s STEO.

The lower forecast inventory builds reflect lower expected crude oil production in both OPEC and the United States.

“Saudi Arabia cut crude oil production by more than expected in February, with production averaging 10 million b/d, and EIA assumes that joint OPEC/non-OPEC crude oil production cuts will remain in place through the end of 2019,” reads the report.

In addition, the US active oil rig count reached a 10-month low of 834 rigs as of March 8, suggesting the rate of US crude oil production growth could slow, according to EIA.

“Even though US crude oil production is estimated to have remained near 11.9 million b/d for the past four months, EIA still forecasts US crude oil production to increase by 1.3 million b/d in 2019 and by 0.7 million b/d in 2020,” said the report.

OPEC and US production levels, as well as the pace of global oil demand growth, present considerable uncertainty to oil market balances and price expectations, said EIA.

Based on the current forecast, however, EIA expects global inventory builds and rising OPEC spare capacity will limit significant upward oil price pressures in 2019 and in 2020.

OPEC and its partners decided to extend its production cuts till the end of 2018 in Vienna on November 30, as the oil cartel and its allies step up their attempt to end a three-year supply glut that has savaged crude prices and the global energy industry.

The 5th OPEC and non-OPEC Ministerial Meeting was held in Vienna, Austria, on December 7, 2018.

The meeting participants decided to adjust the overall production by 1.2 million barrels per day, effective as of January 2019 for an initial period of six months. The contributions from OPEC and the voluntary contributions from non-OPEC participating countries of the ‘Declaration of Cooperation’ will correspond to 0.8 million barrels per day (2.5 percent), and 0.4 million barrels per day (2 percent), respectively.

---

Follow the author on Twitter: @Lyaman_Zeyn

Subscribe to Trend in Google News! Subscribe
Morocco extends health emergency state until Feb. 28
Morocco extends health emergency state until Feb. 28
Jordan says 27 drug smugglers killed at border with Syria
Jordan says 27 drug smugglers killed at border with Syria
SOCAR AQS, Iraqi Drilling Company ink protocol
SOCAR AQS, Iraqi Drilling Company ink protocol
Loading Bars
Latest
Iranian National Soccer Team wins its way into World Cup
Situation on Kyrgyz-Tajik section of state border is stable
Three more citizens of Kyrgyzstan injured as result of conflict on border
Turkey's daily COVID-19 caseload hits new high of 82,180
3 police officers shot in U.S. Houston, suspect at large
Brazil's top court subpoenas Bolsonaro in leaked documents case
Morocco extends health emergency state until Feb. 28
Kyrgyzstan and Tajikistan agree on ceasefire and military withdrawal from border
N.Korea confirms latest weapons tests
Kyrgyzstan evacuates 1,470 residents from villages bordering Tajikistan
Jordan says 27 drug smugglers killed at border with Syria
Turkish 'kindness train' departs for Afghanistan with 748 tons of aid
Representatives of Kyrgyzstan and Tajikistan hold meeting on incident at border
EMA conditionally approves Pfizer's COVID-19 pill
Georgia – Uzbekistan trade turnover up
Tajikistan reports civilian casualties as result of incident on the border
Kyrgyz Border Service: Tajik side again violated bilateral ceasefire agreements
Tajik side does not cease fire and continues to pull up military equipment, personnel
Turkey calls for thaw in Ukraine - Russia tensions
Civil protection services of Kyrgyzstan transferred to emergency mode
Tajikistan pulls heavy equipment to the border - State Committee for National Security of Kyrgyzstan
Five Tajik citizens injured in conflict on border with Kyrgyzstan
Iran, Uzbekistan to develop transit ties
Turkish Airlines' Chairman of the Board of Directors resigns
Azerbaijan's Zangilan Airport to be included into ICAO catalog
Chairman of Azerbaijan's National Television and Radio Council talks details of switching to HD format (Exclusive)
Azerbaijan records increase in loans issued for real estate sector
Uzbekistan shares data on interest expenses of banking sector for 2021
Uzbekistan shares data on regulatory capital of its banks for 2021
Kazakh president suggests to set up transport and logistics consortium with India
Trade turnover between Central Asian countries and India unveiled
Launch of Azerbaijani-Armenian border delimitation to help prevent incidents - Russian MFA
Azerbaijan launches engineering-geological studies in Aghdam Industrial Park
Azerbaijan's Anglo Asian Mining increases its stake in Canadian mining company
Turkmenistan and US discuss bilateral cooperation
Azerbaijan announces auction to privatize state enterprises, vehicles
Azerbaijani gymnast to participate in Trampoline Gymnastics World Cup in Baku
Turkmen Khazar consortium announces tender for tubing repair
Azerbaijan records increase in export of products by industrial zones
Azerbaijan to hold auction for helicopters (PHOTO)
European natural gas prices to fall this year
Armenian PM may visit Turkey
Azerbaijan and Turkmenistan hold another meeting on "Dostlug" field
Global oil market to flip into surplus in 2022
European Azerbaijan School: IELTS Registration Partnership Agreement Between British Council and Azerbaijan Teachers Development Centre was signed yesterday (PHOTO/VIDEO)
Georgia’s electricity exports skyrocket
Turkmenistan allocates loans to expand natural gas fields exploration
Azerbaijan Industry Bank’s assets down in 2021
“We became the first company in CIS region to receive ISO 37001 certificate”
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 3,361 more COVID-19 cases, 1,132 recoveries
Azerbaijan unveils volume of investments made in industrial zones
Swiss company eyes creating assembly line for trains in Georgia
Azerbaijani Muganbank's assets edge up
Poland’s Catholic Church marks Day of Islam
Georgia announces launch date for regional enterprise dev't program (Exclusive)
Azerbaijan to simplify civil UAV registration procedures
Azerbaijan, Iran holding talks on construction of Astara-Rasht railway - official
EBRD discloses results of its investments in Uzbekistan for 2021
Iran reveals COVID-19 data for January 27
Criminal case of former chief of Kazakhstan's KNB classified as "Top Secret"
Assets of Azerbaijan's Yelo Bank increase in 2021
Yapi Kredi Bank Azerbaijan ends 2021 with loss
Iran’s exports from West Azerbaijan Province increase
Demand for eSIM technology increases in Azerbaijan - deputy minister (Exclusive)
German daily COVID cases rise above 200,000, causing staff shortages
Uzbekistan’s CERR forecasts GDP growth for 2022
Kazakhstan’s modernized national security system must be ready to meet any challenges - president
SOCAR AQS, Iraqi Drilling Company ink protocol
Georgia, Azerbaijan discuss attracting tourists to South Caucasus
Azerbaijani Unibank's assets up in 2021
Iran’s POGC unveils volume of gas extracted from South Pars gas field
EIB reveals volume of investments in green transformation
Azerbaijani Finance Ministry to put up gov't bonds for new auction
Iran’s Bahar Azadi gold coin price dips
Azerbaijan discloses timeframe for providing entire country with internet
Bulgaria’s Chiren gas storage project to get funding from EU
EU calls on Azerbaijani farmers to engage in more cooperation
EU companies among largest investors in Azerbaijan – EU Programme Manager
Central Bank of Azerbaijan hold regular foreign currency auction
Iran sees surge in price of apartments in Tehran
Azerbaijan talks unauthorized use of state companies' cable networks
Azerbaijan's Ziraat Bank discloses net profit for 2021
IRICA shares data on import of COVID-19 vaccine to Iran
Uzbekistan Airways to resume flights to Turkey's Istanbul
Azerbaijan sees growth in oil prices
Joint projects - good chance for Azerbaijan, Iran to develop relations further, MP says
Azerbaijan records growth of production in industrial zones in 2021
Azerbaijan talks construction, restoration of roads in liberated areas
Russia records another 88,816 coronavirus cases — crisis center
Uzbekistan shares data on potato imports for 2021
EU shares experience with Azerbaijan in development of agritourism - official
Spirits maker Diageo posts 16% rise in first-half sales
Bank of America raises base pay for top bankers
Uzbekistan places government bonds on currency exchange
Azerbaijan unveils TV & radio coverage of liberated areas
Croatia to possibly take part in demining of Azerbaijani liberated lands
Croatian Ambassador talks impact of COVID-19 on Ionian-Adriatic Pipeline project
Georgian Ambassador to Azerbaijan visits Baku Higher Oil School (PHOTO)
Azerbaijan plays its role in global fight against anti-Semitism and support of multiculturalism - UN official
All news