Investing.com- Oil production for Organization of the Petroleum Exporting Countries and Russia fell in December, just one month before the group officially starts a new round of output cuts, the organization stated in its monthly report on Thursday.
However, prices fell on the news, as the report suggested that the 1.2 million barrel-per-day output cuts it recently agreed with Russia and others will barely be enough to stop a new glut emerging on world markets.
After the report, U.S. West Texas Intermediate (WTI) crude futures slumped 1.59% to $51.53 a barrel by 7:01 AM ET (12:01 GMT).
Oil supplies from OPEC nations dipped 751,000 bpd to nearly 31.6 million bpd, according to independent figures cited by OPEC in its monthly report. Saudi Arabia was the driving force, with output falling by 468,000 bpd to just over 10.5 million bpd in December.
Global oil demand growth for 2019 was unchanged at 1.29 million bpd, while demand for OPEC countries in 2019 is forecast at 30.83 million bpd, down 910,000 bpd from 2018.
Its outlook for non-OPEC output growth was slightly lower, with 2019 supply growth at 2.1 million bpd, outstripping the increase in demand.
“While the economic risk remains skewed to the downside, the likelihood of a moderation in monetary tightening is expected to slow the decelerating economic growth trend in 2019,” OPEC said.
“If the anticipated moderation in monetary policies coupled with an improvement in financial markets materializes, this could provide further support to ongoing increases in non-OPEC supply.”
futures, the benchmark for oil prices outside the U.S., fell 1.21%, to $60.58 a barrel.
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Source: Investing.com
