Oil Continues to Fall on OPEC+ Comments - Forex News by Strategia Forex

Oil Continues to Fall on OPEC+ Comments

Posted Thursday, September 12, 2019 by
Skerdian Meta • 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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About the author

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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