Khalid Al Falih, the Saudi Energy Minister/Bloomberg
Saudi Arabia, the group’s defacto leader, is seeking to balance global oil markets before 2020.
Monday 17, June 2019
(Bloomberg) --Saudi Arabia’s Energy Minister said that the Kingdom hopes Organisation of Petroleum Exporting Countries and its allies (OPEC+) will agree to extend oil production cuts into the second half of the year at a meeting that will probably take place in the first week of July.
Khalid Al-Falih, Saudi Energy Minister, said, “We are hoping that we will reach consensus to extend our agreement when we meet in two weeks time in Vienna, the group will probably meet the first week of July and that will secure the rebalancing the market as we strive for it.”
A seasonal pickup in demand in the second half of the year and refineries returning from maintenance will help align supply and consumption, Al-Falih added.
“I am fairly confident that the fundamentals are going in the right direction,” said Al-Falih.
The Saudi Energy Minister’s comments come after the International Energy Agency (IEA) forecast global supplies will expand far more than demand next year, putting further pressure on OPEC+.
According to IEA even though growth in oil demand will expand to 1.4 million barrels a day in 2020, it will be eclipsed by a 2.3 million barrel-a-day surge in output, as the ongoing boom in US shale is augmented by new fields in Brazil, Norway and Canada.