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OPEC cuts oil supply steeply but sees growing 2019 headwinds

Tuesday 12/February/2019 - 06:30 PM
FILE PHOTO: The logo
FILE PHOTO: The logo of the Organization of the Petroleum Ex
Reuters

(Reuters) - OPEC said on Tuesday it had cut oil production steeply under a global supply deal، although it flagged headwinds confronting its efforts to prevent a glut this year including weaker demand and higher rival output.

In a monthly report، OPEC said its oil output fell almost 800،000 barrels per day in January to 30.81 million bpd. That is still slightly more than the demand OPEC expects for its crude on average in 2019.

Worried by a drop in oil prices and rising supplies، the Organization of the Petroleum Exporting Countries and its allies including Russia agreed in December to make supply cuts. Under the deal، OPEC is lowering output by 800،000 bpd from Jan. 1.

In the report، OPEC cut its forecast for 2019 world economic growth by 0.2 percentage point to 3.3 percent and highlighted a range of headwinds such as a slowdown in global trade.

“Some recent positive developments could support the global economy at its current level، including the recovery in oil prices، possible progress in U.S.-China trade negotiations and less-ambitious monetary tightening by the U.S. Federal Reserve،” OPEC said in the report.

“Nevertheless، this would not lift the global economy beyond the growth forecast.”


Edited by: Mohamed Emad.

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