OPEC sees small 2020 oil deficit even before latest supply cut

The logo of the Organization of the Petroleum Exporting Countries (OPEC) is pictured at its headquarters in Vienna, Austria, March 21, 2016.
Leonhard Foeger | Reuters

OPEC on Wednesday pointed to a small deficit in the oil market next year due to restraint by Saudi Arabia even before the latest supply pact with other producers takes effect, suggesting a tighter market than previously thought.

In a monthly report, OPEC said demand for its crude will average 29.58 million barrels per day (bpd) next year. That points to a 30,000 bpd deficit if OPEC keeps pumping at November's rate. Previous reports had suggested a surplus.

The Organization of the Petroleum Exporting Countries, Russia and other producers, a group known as OPEC+, have since Jan. 1 implemented a deal to cut output by 1.2 million bpd to support the market.

At meetings last week, OPEC+ agreed to a further cut of 500,000 bpd as of Jan. 1 2020.