Global oil stocks to pile up as proposed OPEC cuts are no match for coronavirus induced surplus - Panorama Insurance Brokers

Global oil stocks to pile up as proposed OPEC cuts are no match for coronavirus induced surplus

The coronavirus outbreak in China will curb global oil demand growth by at least a quarter this year, and the production cuts of 600,000 barrels per day (bpd) proposed by an OPEC+ committee are far from enough to balance the market, a Rystad Energy analysis shows.

Both the first and second quarters of 2020 will see global oil production surpluses. The energy research and business intelligence company said its estimate shows that the first quarter of the year will see producers left with a stock build of 700,000 bpd. Our previous estimate was for a more or less balanced first quarter with a 100,000 bpd surplus.

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