Opec expects lower demand for its crude
Opec expects lower demand for its crude oil in 2020 even as global demand rises, it said on Wednesday, as rival producers grab market share and the US looks set for another output record.
The US, which has seen its output soar in recent years powered by shale, will see total liquids output exceed a 20 million bpd milestone for the first time, the Organisation of the Petroleum Exporting Countries forecast in its market report.
It lowered its 2020 demand forecast for Opec crude by 0.1 million bpd to 29.5 million.
That would be around 1.2 million bpd lower than in the whole of 2019 and in line with December production, when Opec's share of global output fell 0.1 percentage point month on month to 29.4 per cent.
This year, it said Opec's market share is set to fall further as output booms in non-Opec rivals.
Opec said it had raised its overall 2020 oil demand growth outlook by 0.14 million bpd to 1.22 million bpd from the previous month, reflecting an improved economic outlook and booming demand in India and China. If that growth materialises, it would be 30 per cent stronger than in 2019.
Meanwhile, the UAE's energy minister said on Wednesday he expects a positive meeting when Opec+ meets in March.
Opec and its allies, a group known as Opec+, is capable of doing whatever is needed to achieve a balanced oil market, Suhail bin Mohammed Faraj Faris Al Mazrouei, UAE Minister of Energy and Industry, told reporters on the sidelines of an industry conference in Abu Dhabi.
Al Mazrouei said Opec is keeping an eye on non-Opec oil output, especially from the United States.
Russian Energy Minister Alexander Novak said on Wednesday that Russia is ready to comply with the Opec+ oil output cut deal in January, Russia's Interfax news agency quoted.
Oil prices slipped on Wednesday on concerns that the Phase 1 trade deal between the United States and China, the world's biggest oil users, may not boost demand as the US intends to keep tariffs on Chinese goods until a second phase.
Brent crude was down 8¢ at $64.41 per barrel by 1257GMT. US West Texas Intermediate crude futures were down 3¢ at $58.21 a barrel.
The Dubai Gold and Commodities Exchange (DGCX) continues to see... READ MORE
UAE-Russia food trade has increased steadily in recent years due to... READ MORE
The U.S. trade deficit rose for the third straight month in May. Both ... READ MORE
U.S. employers added a substantial 4.8 million jobs in June, and the... READ MORE
'Grace period is granted to the Emiratis, GCC citizens and residents... READ MORE
The facilities continue to provide specialised and full healthcare... READ MORE
The authorities continue to urge the public to follow health and... READ MORE
The group said that "the move will ensure that the American-... READ MORE