Oil Continues to Fall on OPEC+ Comments
The comments form OPEC+ sound dovish today and crude Oil is continuing to decline
Skerdian Meta•Thursday, September 12, 2019•1 min read
The Organization of Petroleum Exporting Countries (OPEC) and Joint Ministerial Monitoring Committee (JMMC) meeting is taking place today. They have made quite a few comments and Crude Oil is still slipping lower, following yesterday’s bearish reversal. Here are the main comments:
IEA:
- OPEC+ faces daunting challenges in managing the market in 2020
- Demand for OPEC+ crude will be 1.4 million bpd below August production in H1 2020
- Says halt in stockpiles is seen to be temporary
- There could be a significant increase in stockpiles in 2020
- OPEC+ producers will see surging non-OPEC oil production next year
OPEC+:
- Discussing improving output cut compliance
- Important for all countries to reach full conformity with output cuts
- Compliance reached 136% in August
- Non-compliant countries have pledged to achieve 100% compliance
- Next JMMC meeting will take place on 4 December
From what we are hearing, it seems like OPEC+ will have a tough time managing the supply and demand next year. The demand is expected to be lower, while stockpiles are expected to increase, which would mean lower Oil prices. Non-OPEC production is also expected to surge in 2020, so everything is pointing down for Crude Oil. Crude Oil continues the bearish reversal.
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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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