OPEC Sees Rival Supplies Growing Most in Five Years in 2019
NEW YORK (Bloomberg) - OPEC expects supplies from its rivals to increase by the most in five years in 2019, with extra oil from the U.S. alone sufficient to meet the growth in global demand.
In its first detailed outlook for 2019, the Organization of Petroleum Exporting Countries indicated that the North American oil boom means OPEC members are already producing enough crude to cover what will be needed from them. That could still change, however, as the group’s output is threatened by a spiraling economic crisis in Venezuela and renewed U.S. sanctions on Iran.
The report may fuel the debate that’s splitting the organization. Saudi Arabia, OPEC’s biggest producer, is resolved to increase oil output amid pressure from the U.S. to cool rallying prices. Iran, which is seeing customers flee as American sanctions kick in, argues that other members are betraying the group if they raise supply.
"If the world economy performs better than expected, leading to higher growth in crude demand, OPEC will continue to have sufficient supply to support oil-market stability,” the organization’s secretariat in Vienna said in the report.
Global oil demand will climb by 1.45 million barrels a day in 2019, slightly below this year’s growth rate, to average 100.3 million barrels a day, according to the report.
The growth in non-OPEC supply will be considerably stronger though, at 2.1 million barrels a day, the most since 2014. Though the shale-oil boom is slowing because of pipeline constraints, the U.S. will still contribute about three-quarters of the global supply expansion, enough to meet the growth in world consumption.
In its first detailed outlook for 2019, the Organization of Petroleum Exporting Countries indicated that the North American oil boom means OPEC members are already producing enough crude to cover what will be needed from them. That could still change, however, as the group’s output is threatened by a spiraling economic crisis in Venezuela and renewed U.S. sanctions on Iran.
The report may fuel the debate that’s splitting the organization. Saudi Arabia, OPEC’s biggest producer, is resolved to increase oil output amid pressure from the U.S. to cool rallying prices. Iran, which is seeing customers flee as American sanctions kick in, argues that other members are betraying the group if they raise supply.
"If the world economy performs better than expected, leading to higher growth in crude demand, OPEC will continue to have sufficient supply to support oil-market stability,” the organization’s secretariat in Vienna said in the report.
Global oil demand will climb by 1.45 million barrels a day in 2019, slightly below this year’s growth rate, to average 100.3 million barrels a day, according to the report.
The growth in non-OPEC supply will be considerably stronger though, at 2.1 million barrels a day, the most since 2014. Though the shale-oil boom is slowing because of pipeline constraints, the U.S. will still contribute about three-quarters of the global supply expansion, enough to meet the growth in world consumption.