The size of output cuts agreed at the latest OPEC meeting were calculated by taking into account a possible slowdown in consumption, said Russian oil Minister Novak replying to Reuters question.

According to Novak production cuts could rebalance the market even if global oil demand slowed in line with EIA forecast or even lower.

IEA reported that global oil demand fell by 160,000 barrels per day compared to May 2018. From January to May, oil demand grew by 520,000 barrels per day, marking the slowest growth since 2008.

In general, IEA estimates are not a surprise for us and rather confirm our own forecasts: when deciding to extend the Agreement, we took into account the possibility of slowing oil demand growth rates to these levels and even lower, including a decrease in demand growth in 2020 to 1.0 mbs, said Novak.

Oil prices rose 1.5% after the Novak statement extending bullish momentum for the second day. Chinese export data supported expectations that production volumes will shrink at slower pace, improving energy consumption forecast.
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