The global oil market is expected to be well-supplied in 2020 and demand growth could stay weak, keeping a lid on oil prices, the head of the International Energy Agency (IEA) told Reuters on Jan. 10.
"We are expecting a demand growth of slightly higher than 1 million barrels per day (bbl/d)," said the IEA's executive director, Fatih Birol, adding that growth could remain weak, compared with historical levels.
There is also an implied surplus of 1 million bbl/d oil, ensuring that the global market is well supplied, he said.
"Non-OPEC production is very strong. We still expect production coming from, not just United States, but also Norway, Canada, Guyana, among other countries," Birol said, referring to oil producers outside OPEC.
"Therefore, I can tell you that the markets are, in my view, very well supplied with oil, and as a result of that, we see prices remain at $65 a barrel."
Brent crude futures topped $70 a barrel after a U.S. air strike killed Iran's top commander in Iraq on Jan. 3, escalating tensions in the Middle East. But prices cooled quickly after the threat of war in the Gulf receded.
Recommended Reading
Ring Energy Bolts On Lime Rock’s Central Basin Assets for $100MM
2025-02-26 - Ring Energy Inc. is bolting on Lime Rock Resources IV LP’s Central Basin Platform assets for $100 million.
IOG Resources II Buys Non-Op Utica Shale Interests
2025-02-26 - IOG Resources II is expanding in Appalachia with an acquisition of Utica working interests in eastern Ohio.
Viper Buys $330MM Midland Interests in Shadow of $4.5B Dropdown
2025-01-31 - Viper Energy said that in addition to a $4.45 billion dropdown by Diamondback Energy, the company would also purchase royalty acreage in Howard County, Texas, for $330 million.
NOG Spends $67MM on Midland Bolt-On, Ground Game M&A
2025-02-13 - Non-operated specialist Northern Oil & Gas (NOG) is growing in the Midland Basin with a $40 million bolt-on acquisition.
DNO to Buy Sval Energi for $450MM, Quadruple North Sea Output
2025-03-07 - Norwegian oil and gas producer DNO ASA will acquire Sval Energi Group AS’ shares from private equity firm HitecVision.