Nov. 12 (UPI) — The OPEC and non-OPEC Joint Ministerial Monitoring Committee that met in Abu Dhabi on Sunday said they see greater supply than demand in 2019, but did not take any coordinated action to cut output.
“The Committee reviewed current oil supply and demand fundamentals and noted that 2019 prospects point to higher supply growth than global requirements, taking into account current uncertainties,” the OPEC said in a statement in which it did not announce any joint production cut decision.
“The Committee also noted that the dampening of global economic growth prospects, in addition to associated uncertainties, could have repercussions for global oil demand in 2019 — and could lead to widening the gap between supply and demand,” it added.
It did not announce any coordinated production cut but “to continue closely monitoring oil market conditions and further refine the scenario analysis based on updated data,” according to OPEC.
Saudi Arabia’s Energy Minister Khalid Al-Falih said at the meeting that “there is no consensus” among oil producers about cutting production, the Saudi Gazette reported. He said it was “premature” to talk about a specific joint action and that all factors will be studied.
He also said that Saudi Arabia plans to reduced oil exports by half a million barrels a day in December compared with November. Saudi Arabia had produced 10.7 million barrels per day since October.
The meeting occurred after sharp reductions in crude oil prices that saw declines in Brent crude oil prices from a peak of $86 per barrel in early October down to $70.18 per barrel on Friday.
The meeting took place in advance of ADIPEC 2018, a Nov. 12-15 event in Abu Dhabi where ministers from producing countries and trade officials will attend.
The next meeting of the OPEC and non-OPEC Joint Ministerial Monitoring Committee is scheduled to take place on December 5 in Vienna.
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