Opec Faces Extended Demand Slump
14 Jun, 2019
OPEC & Global Markets
Opec Output Rises In May Ahead Of Latest Crunch Meeting
07 Jun 2019
Opec production edged up for the second consecutive month in May, averaging 30.39mn b/d. With decision time approaching on whether Opec and its allies will extend production restrictions beyond their current end-June expiry, Secretary General Mohammad Barkindo says Opec is “closely monitoring oil market developments, which have seen a high level of volatility in recent weeks.”
Downwards pressure on prices over the past five years has typically been driven by supply-side dynamics rather than demand. The surge in volumes from the US shale patch in particular created a supply glut that eventually forced Opec, Russia and their allies to implement supply cuts from January 2017 that have broadly been in force ever since (MEES, 16 December 2016).
Demand growth meanwhile has been speeding along in excess of 1mn b/d each year, including around 1.9mn b/d over 2015, and has been projected at 1.2-1.3mn b/d for 2019...
Opec's 2018 Oil Export Revenues ($Bn)