BAKU, Azerbaijan, Dec.17
By Leman Zeynalova – Trend:
Oil market is expected to be in deficit of 0.2 million barrels per day in 2020, Trend reports citing the US JP Morgan Bank forecasts.
"In contrast to our September forecast that the global oil market will be in surplus of 0.6 million barrels per day (mbpd) on average for 2020, we now estimate the market will be in deficit of 0.2 mbpd," the bank said.
The bank raised the forecasts for Brent and West Texas Intermediate (WTI) oil for the next year amid the decision of OPEC+ countries to deepen the output cuts.
The forecasts for Brent oil for 2020 rose from $59 per barrel earlier to $64.5 per barrel, while it is expected to drop back to 61.50 per barrel in 2021, according to JP Morgan.
WTI prices are forecast to average at $60 per barrel in 2020, then declining to $57.50 per barrel in 2021, said the bank.
JP Morgan continues to expect global oil demand growth at 1 mbpd.
The 7th OPEC and non-OPEC Ministerial Meeting decided for an additional adjustment of 500 tb/d to the adjustment levels as agreed at the 175th Meeting of the OPEC Conference and 5th OPEC and non-OPEC Ministerial Meeting. These would lead to total adjustments of 1.7 mb/d. In addition, several participating countries, mainly Saudi Arabia, will continue their additional voluntary contributions, leading to adjustments of more than 2.1 mb. This additional adjustment would be effective as of 1 January 2020 and is subject to full conformity by every country participating in the DoC.
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