On Sunday, the 10th of March 2019, Khalid al-Falih, the Saudi Oil Minister, said that the US and China would be leading to a salubrious global demand for oil in 2019, yet it could have been too early to talk about OPEC output policy change over the OPEC nations’ next gathering in April.
Besides, the OPEC kingpin, Saudi’s oil minister had also added that the global oil demand was expected to grow by 1.5 million barrels per day this year. In an interview with the press, Falih said, “If you look at Venezuela alone you would panic, if you look at the U.S.
you would say the world is awash with oil. You have to look at the market as a whole. We think 2019 demand is actually quite healthy”. In fact, an OPEC founding member, Venezuela had been languishing lavishly from a political and economic crisis, while the oil output of the country had been plunged by 40 percent to 9,20,00 barrels per day, after the United States had inclined sanctions on Venezuelan crude on January 28th, 2019.
On the flipside, once one of the world’s largest oil importers, United States had become world’s biggest oil producer in February, hitting a record of producing over 12 million barrels per day, largely boosted by onshore Shale production.
Citing a nourishing outlook for crude oil demand, alongside crude oil future prices, Falih also added that the Chinese oil demand would surge above 11 million barrels per day in 2019 and the group of petroleum-producing nations (OPEC), a 28-nation pact, would unlikely to alter its policy of production cut of up to 1.2 million barrels per day.
However, addressing the possibility of a policy change by the third quarter, Falih said, “We will see where the market is by June and adjust appropriately”.