Wood Mackenzie: Global oil market not as saturated as many believe

Global oil market may face a lack of supply in the third quarter of 2019, Ann-Louise Hittle, vice president, Macro Oils, at global natural resources consultancy Wood Mackenzie, told Trend.

The expert said that the market isn’t oversaturated as much as many believe.

She noted that excess in demand may lead to supply problems.

"Last month, an excess of demand was expected in the market when there were reports of a revision of some forecasts for 2019,” she said. "However, the balance can quickly shift to an excess of supply if there is another loss in production or exports.”

Regarding the OPEC+ ministerial meeting, she said that it’s too early to give forecasts.

OPEC and a number of non-affiliated countries (OPEC+) at the end of 2018 decided to modernize the terms of the agreement on reducing oil production, which has been in force since the beginning of 2017. The countries agreed to reduce their production by a total of 1.2 million barrels per day from the level of October 2018. The new agreement is designed for the first half of 2019.

The next OPEC + ministerial meeting will be held July 1-2.