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OPEC sees more 2019 demand for its oil as it keeps cutting output

Key Points
  • World oil demand growth is now forecast to increase by 1.21 million barrels per day.
  • In April 2019, OPEC crude oil production was broadly unchanged from the previous month to average 30.03 mb/d.
  • The US, Brazil, Russia, Australia and the U.K. are seen as the main drivers for this year’s growth.

OPEC said on Tuesday that world demand for its oil would be higher than expected this year as supply growth from rivals including U.S. shale producers slows, pointing to a tighter market if the exporter group refrains from raising output.

But the Organization of the Petroleum Exporting Countries, in a monthly report, said its output fell slightly in April as U.S. sanctions on Iran added to the impact of an OPEC-led supply-cutting pact.

OPEC, Russia and other non-member producers are reducing output by 1.2 million barrels per day from Jan. 1 for six months. The producers meet on June 25-26 to decide whether to extend the pact.

Now watch: U.S. Secretary of State on oil prices.

VIDEO2:5902:59
Mike Pompeo: Oil prices didn't rise after the US withdrew from Iran nuclear deal