ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2023
  • Adani Saga
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Real Estate
    • Home Buyers
    • Builders
  • Axis MF
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • Viral
    • Education
    • Jobs
Read in App
Business News » World News

OPEC cuts oil supply steeply but sees growing 2019 headwinds

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App

OPEC said on Tuesday it had cut oil production steeply under a global supply deal, although it flagged headwinds confronting its efforts to prevent a glut this year including weaker demand and higher rival output.

In a monthly report, OPEC said its oil output fell almost 800,000 barrels per day in January to 30.81 million bpd. That is still slightly more than the demand OPEC expects for its crude on average in 2019.

Worried by a drop in oil prices and rising supplies, the Organization of the Petroleum Exporting Countries and its allies including Russia agreed in December to make supply cuts. Under the deal, OPEC is lowering output by 800,000 bpd from Jan. 1.

In the report, OPEC cut its forecast for 2019 world economic growth by 0.2 percentage point to 3.3 percent and highlighted a range of headwinds such as a slowdown in global trade.

"Some recent positive developments could support the global economy at its current level, including the recovery in oil prices, possible progress in U.S.-China trade negotiations and less-ambitious monetary tightening by the U.S. Federal Reserve," OPEC said in the report.

"Nevertheless, this would not lift the global economy beyond the growth forecast."

Oil extended a rally on Tuesday above $63 a barrel. Crude has risen from less than $50 in December, supported by the Saudi Arabia-led OPEC cuts and involuntary declines despite concerns about slowing demand.

The supply cut was a policy U-turn after the producer alliance known as OPEC agreed in June 2018 to boost supply amid pressure from U.S. President Donald Trump to lower prices and cover an expected shortfall in Iranian exports.

OPEC changed course after prices slid from $86 a barrel in October, making the producers wary of a new glut. An OPEC cut from January 2017 had got rid of an earlier surplus.

In a sign of excess supply, OPEC`s report said oil inventories in developed economies were above the five-year average in December.SAUDI CURBS

The biggest drop in OPEC supply last month came from Saudi Arabia and amounted to 350,000 bpd, the report showed.

With the supply cut delivered in January, the 11 OPEC members expected to cut supply under the deal achieved 86 percent compliance, according to a Reuters calculation - a high rate by OPEC`s past standards.

This could rise in coming months as Saudi Arabia voluntarily lowers supply by more than it agreed.

Saudi Arabia plans to pump around 9.8 million bpd in March, more than 500,000 bpd below its target under the deal, its energy minister told the Financial Times.

And further declines in Iran, Libya and Venezuela - exempt from the supply pact - could give a tailwind.

OPEC said in the report that 2019 demand for its crude would decline to 30.59 million bpd, a drop of 240,000 bpd from its last report, as rivals such as the United States boost output and the slowing economy limits demand.

This implies that the global market would see a slight surplus of about 200,000 bpd in 2019 should OPEC keep pumping at January`s rate although - other things being equal - the Saudi plan to reduce supply further will offset this.

OPEC forecast global oil demand would grow by 1.24 million bpd in 2019, down 50,000 bpd from last month. Non-OPEC producers will boost output by 2.18 million bpd, 80,000 more than expected previously.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
Updated: Tue, Feb 12, 2019
09:00 pm
Reuters
RELATED NEWS
GST Council to meet on February 18 GST Council to meet on February 18
No timeline to remove old tax regime, Revenue Secretary Sanjay Malhotra says No timeline to remove old tax regime, Revenue Secretary Sanjay Malhotra says
RBI to hike repo rate by 25 bps in February, ending tightening cycle: Reuters poll RBI to hike repo rate by 25 bps in February, ending tightening cycle: Reuters poll
Pakistan raises petrol price by Rs 35, pushing retail cost to a whopping Rs 249.80 per litre amid severe food, energy crisis Pakistan raises petrol price by Rs 35, pushing retail cost to a whopping Rs 249.80 per litre amid severe food, energy crisis
Budget 2023: Why budget's printing was shifted to North Block from Rashtrapati Bhavan? Budget 2023: Why budget's printing was shifted to North Block from Rashtrapati Bhavan?

LATEST NEWS

Govt proposes changes in income tax law for startups: Here's how it will help sector to boom, top official explains

Q3 Results 2023: Aditya Birla Capital, JK Tyre, Ethos declare December quarter results - HIGHLIGHTS

SBI's total exposure to Adani Group at Rs 27,000 crore; none against shares: Chairman Dinesh Khara

ITC share price up 10% post-Budget; why increase in cigarette tax is good news for company?

Government nod to Vodafone Idea to convert Rs 16,133 crore spectrum, AGR interest dues into equity

BSNL expected to clock net profit in FY27 : MoS Communications Devusinh Chauhan

Sebi tweaks operational framework on credit rating agencies

ITC Dividend 2023 declared: Check record date, ex-date and payment date

ITC beats analysts' estimates with 21% jump in quarterly profit, declares Rs 6/share dividend

India Cements Q3 result: Subsidiary sale boosts net profit to Rs 133 crore

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. India Dot Com Private Limited. All Rights Reserved.
LIVE TV