The international oil market is expected to achieve balance by the end of 2019, yet the Organization of the Petroleum Exporting Countries (OPEC) will continue to work on maintaining the market balance, according to Kuwaiti Oil Minister Khaled Al-Fadhel, Reuters reported.
A decline in global inventories and the surge in demand support reaching the market balance, the minister added, pointing out to the doubts regarding oil demand growth, which affect OPEC and its allies by having no clear plan for the oil supply during H2 2019.
“There is great anxiety in the market today mainly related to supply concerns. For example, the impact of the US government decision announced recently not to extend the waivers to major buyers of Iranian crude has yet to be felt,” Al-Fadhel told Reuters.
“But we still have some more work to do. I believe the market is expected to be balanced during the 2nd half of 2019, more towards the end of the year,” he added.
In addition, OPEC’s output decline is affected by the US sanctions on Iran and Venezuela. OPEC’s share of the agreed cuts is 800,000 barrels per day (b/d), but its actual reduction is large and OPEC+ cuts output by more than their share, Al-Fadhel added.