Datasets:

---

Recag

/

Rp_CommonC_85

like 0

ERROR: type should be string, got "https://www.bloomberg.com/news/articles/2019-07-11/opec-sees-new-oil-surplus-in-2020-as-u-s-shale-keeps-surging\nOPEC sees new oil surplus in 2020 as U.S. shale keeps surging\nGrant Smith, Bloomberg\nPublished 7:09 am CDT, Thursday, July 11, 2019\nRussian Minister of Energy Alexander Novak, Venezuela's Manuel Salvador Quevedo Fernandez People's Minister of Petroleum, Mohammad Sanusi Barkindo OPEC Secretary General of Nigeria and Khalid Al-Falih, Minister of Energy, Industry and Mineral Resources of Saudi Arabia, from left, wait for the start of a meeting of the Organization of the Petroleum Exporting Countries, OPEC, and non OPEC members, at their headquarters in Vienna, Austria, Tuesday July 2, 2019.\nNEXT: See the member nations of OPEC.\nRussian Minister of Energy Alexander Novak, Venezuela's Manuel Salvador Quevedo Fernandez People's Minister of Petroleum, Mohammad Sanusi Barkindo OPEC Secretary General of Nigeria and Khalid Al-Falih, Minister ... more\nPhoto: Ronald Zak, AP\nA week after OPEC agreed to keep oil production restrained until early next year, the group’s first forecasts for 2020 showed it faces an even longer and tougher challenge.\nThe Organization of Petroleum Exporting Countries, which pumps 40% of the world’s oil, estimated that it’s producing about 560,000 barrels a day more than will be needed next year as the ongoing surge in U.S. shale threatens to deliver another surplus. Supplies from the cartel’s rivals will grow by more than twice as much as global oil demand, it forecast.\nSaudi Arabia and its partners agreed in Vienna last week to continue the production cutbacks they’ve made into the first quarter of 2020, to balance markets against a faltering global economy and record American output. Crude prices, trading near $67 a barrel in London, remain below the levels most OPEC nations need to cover government spending.\nINVENTORY: Oil prices spike near $60 on big crude inventories dip\nThe report released by the group’s research department on Thursday however suggests that it would need to cut production further, and continue that restraint for all of next year, in order to prevent the emergence of a new glut.\nGlobal oil consumption will continue to grow in 2020 at the same pace as this year, at about 1.1 million barrels a day, or 1.1%. The expansion will be powered by emerging economies like India and China, but tempered by stagnant consumption in developed nations.\nSupplies from outside OPEC however will soar by 2.4 million barrels a day, as new pipelines in the U.S. enable the country’s shale-oil explorers to press on with more drilling. The fresh tide of American oil will be supplemented by other countries such as Brazil and Norway.\nAs new non-OPEC supplies swamp the growth in demand, the amount of crude required from the cartel will slump sharply for a third consecutive year.\nAn average of 29.27 million barrels of crude will be needed from OPEC in 2020, significantly below the 29.83 million a day its 14 members produced last month. Their output fell again in June, as deliberate cutbacks were compounded by U.S. sanctions on crude exports from Iran.\nEXPANSION: Aramco awards $18 billion in deals for work at oil fields\nWith OPEC pumping in excess of levels needed next year, the organization and its partners would have to trim output further to keep markets in equilibrium, though Saudi Arabian Energy Minister Khalid Al-Falih said in Vienna last week that the kingdom -- which has reduced supplies more than it pledged -- has already cut “deep enough.”\nIndeed, the report released Thursday may vindicate warnings from Al-Falih’s predecessor, Ali Al-Naimi, that production cuts by OPEC would only back-fire by giving prices enough support to encourage greater investment in U.S. shale.\nFor now, however, there’s no sign the kingdom intends to reverse its current policy. At last week’s meeting, OPEC and its partners signed a charter symbolizing their willingness to manage supplies over the long term, and Al-Falih said that intervention will be necessary until American shale output goes into decline.\nThe organization’s latest outlook suggests he will be tested on that commitment.\nU.S. will soon surpass Saudi Arabia in petroleum exports: Rystad\nChazen: Wall Street thinks drillers will \"waste\" cash on...\nTrump's proposed steel tariffs could hammer Houston...\nOPEC, Russia seen beating expectations on output cuts\nNoble Energy selling its Gulf of Mexico business to Fieldwood\nFuel Fix on Twitter\nTweets by fuelfixblog\nFuel Fix on Facebook\nFuelFix"