OPEC on Wednesday pointed to a small deficit in the oil market next year due to restraint by Saudi Arabia even before the latest supply pact with other producers takes effect, suggesting a tighter market than previously thought.
In a monthly report, OPEC said demand for its crude will average 29.58 million barrels per day (bpd) next year. That points to a 30,000 bpd deficit if OPEC keeps pumping at November’s rate. Previous reports had suggested a surplus.
The Organization of the Petroleum Exporting Countries, Russia and other producers, a group known as OPEC+, have since Jan. 1 implemented a deal to cut output by 1.2 million bpd to support the market.
At meetings last week, OPEC+ agreed to a further cut of 500,000 bpd as of Jan. 1 2020.