Thus with oil production growth continuing to surge in the U.S., the IEA now expects, the "American oil exports, (and not just the production), to surpass Russian Federation and almost reach Saudi Arabian levels over the next five years, bringing in a greater diversity of supply".
The Organization of the Petroleum Exporting Countries (OPEC) and some non-aligned producers including Russian Federation have been withholding oil supply since the start of the year to tighten global markets and prop up crude prices.
Bloomberg reported that U.S. President Donald Trump and Chinese President Xi Jinping may not meet until April at the earliest, after the Wall Street Journal said this month that Xi and Trump could meet around March 27.
The National Bank of Australia said the outlook for the oil market was mixed because there were downside risks to prices due to concerns about economic growth and strong growth in USA supply, while the cutbacks in OPEC declined and the United States imposed sanctions on Iran and Venezuela.More news: Wade exits Bucks game with apparent hip injury
OPEC calls on oil producers to continue to support oil market stability in 2019, Trend reports citing the OPEC Monthly Oil Market Report.
United States crude oil production also dipped, falling by 100,000 barrels per day (bpd) to 12 million bpd. The coalition embraces 24 nations, including OPEC members as well as other producers such as Russian Federation and Kazakhstan.
OPEC sources have said an extension of the pact is the likely scenario.
After the review meeting on March 17 and 18, ministers from OPEC+ alliance will meet in Vienna next month, and again in June, to decide on output policy for the second half of the year.More news: Facebook says it 'quickly' removed New Zealand shooter's video
Despite the new curbs, market indicators followed by OPEC will prolong concerns about excess supply. Meanwhile, OPEC estimated that OECD inventories rose by 22 million barrels in January, or 19 million barrels above the five-year average.
OPEC's share of the cut is 800,000 bpd, and the report showed producers were over-delivering.
The IEA, on the other hand, foresees that OPEC countries will reduce their production to 380,000 barrels per day by 2024 such that the global oil prices will not decline. Production in Iran and Libya, also exempt, was little changed. In 2018, the United States contributed 79 percent of the 2.8 million bpd of non-OPEC output growth.
The sole point of consolation for Opec and its allies including Russian Federation in the report was that though the global oil demand growth is set to ease as the Chinese dragon slows down, yet it would still rise by an annual average of 1.2mbpd to 2024, reaching 106.4mbpd then.More news: According to math, Anthem’s current loot grind is pointless