On Friday, the 16th of August 2019, OPEC (Organization of Petroleum Exporting Countries), the 14-nation pact of crude oil exporting countries, sent a downbeat signal on crude oil market outlook for the rest of 2019, citing concerns over a steep slowdown in economic growth.
Further inside the bid, underscoring challenges for 2020, OPEC also said that as its rivals were pumping more, there might have been a surplus by 2020, which in effect could build a strong case for OPEC to cut output further on top of an already adopted output curb policy of 1.2 million barrels per day to balance crude oil market.
Besides, in a monthly report on Friday (August 16th), the OPEC had slashed its forecast for global oil demand for the rest of this year by 40,000 barrels per day to 1,10 million barrels per day, meanwhile indicating that there would be a marginal surplus in 2020.
Addressing to a swath of geopolitical tension ranging from an escalated Sino-US trade spat to a tumultuous political condition in Argentina, curbing global supply demand more quicker than it expected, OPEC said on Friday’s (August 16th) report, “While the outlook for market fundamentals seems somewhat bearish for the rest of the year, given softening economic growth, ongoing global trade issues and slowing oil demand growth, it remains critical to closely monitor the supply/demand balance and assist market stability in the months ahead. ”