The Organization of the Petroleum Exporting Countries (OPEC) has cut its forecast for global oil demand growth in 2020, Reuters reported.
The downgrade in demand forecasts by 60,000 barrels per day (b/d) to 1.08 million b/d is attributed to an economic slowdown, with trade war concerns and the uncertainty surrounding the Brexit pointing to the possibility of more production cuts.
Furthermore, OPEC, which is sponsoring an output deal between its members and other non-OPEC crude producers led by Russia, stressed the need to maintain market balance and avoid a supply glut of oil, warning against unwanted volatility and a potential relapse into market imbalance.
OPEC Secretary-General Mohammad Barkindo recently told reports that OPEC may consider new measurements for the output cut deal.
The upcoming OPEC Joint Ministerial Monitoring Committee (JMMC) will be held in Abu-Dhabi on September 12 and it is set to discuss production policy.