Global oil market might face deficit in 2019 on supply cut: IEA

The global oil market might move into deficit sooner than expected owing to the Organization of Petroleum Exporting Countries (OPEC’s) decision to cut output supply, the International Energy Agency (IEA) said on Thursday.

The Paris-based IEA forecasted that global oil demand growth in 2019 will stand at 1.4 million barrels per day (mbd), unchanged from its projection last month.

“Uncertainty over the global economy stemming from US-China trade tensions could undermine oil consumption next year, as growth in supply gathers pace” IEA noted.

“For 2019, our demand growth outlook remains at 1.4 mbd even though oil prices have fallen back considerably since the early October peak,” it said.

“Some of the support provided by lower prices will be offset by weaker economic growth globally, and particularly in some emerging economies,” it further added.

OPEC agreed last week with Russia, Oman and other producers to cut oil output by 1.2 mbd from January to stem a build-up in unused inventories of fuel.