Oil Continues to Fall on OPEC+ Comments

The comments form OPEC+ sound dovish today and crude Oil is continuing to decline

Written by: Skerdian Meta • Thursday, September 12, 2019 • 1 min read

• Last updated: Thursday, September 12, 2019

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.