Oil market balances between supply and demand mid-years: NBK Capital

March 13, 2019

NBK Capital to issue World Energy Outlook 2019

KUWAIT: International oil prices held stable from beginning January to beginning February 2019, affected by concerns regarding a slowing global economy, reports the NBK Capital World Energy Outlook 2019. Doubts regarding the ongoing US-China trade dispute, in addition to the possible return of Libyan supplies to world markets are also impacting price.

Oil prices were buoyed by news that OPEC and its allies have achieved significant progress in reducing production by 1.2 million barrels per day, reducing global oversupply. Saudi Arabia has cut production by 350,000 bpd to 10.213 million barrels; Kuwait and the UAE have also significantly reduced production.

The oil market is heading towards a rapid depletion of abundant supply due to several factors including: sanctions on Iran and Venezuela and disruption of production and force majeure in Libya’s spark field. At the same time, OPEC+ producers continue efforts to control supplies by reducing production. These cuts by member states exceed pre-commitments due to additional voluntary Saudi-led reductions and other involuntary reductions as a result of geopolitical factors including sanctions on producers Iran and Venezuela.