OPEC cuts oil demand forecasts, warns of supply glut.

Petrotahlil :In its monthly report for September, the Organization of the Petroleum Exporting Countries (OPEC) announced that it lowered estimate for world oil demand by 80,000 barrel/day to 1,02 million barrel/day compared with its last projection.

The organization now expects global oil demand to grow by 1.08 million barrel/day, down by 60,000 b/d from its previous forecast. Slower global economic growth projections were cited as the reason behind the organization’s downward revisions.

Furthermore, the cartel warned of a possible supply surplus in the market as the current oil production rate is expected to exceed demand for oil. Thus, OPEC highlighted the need for sustaining the ongoing production cuts, which were lastly extended until the first quarter of 2020.

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