Organisation of the Petroleum Exporting Countries , has forecast a much tighter market in 2019, and has seen its production fall significantly this year, led by curbs to Saudi Arabian output along with dramatic, involuntary declines from sanctions-hit Venezuela.
Though oil prices like the Brent Crude and Nigeria’s Bonny Light traded above $71 yesterday, Nigeria needs to ramp up production albeit the agreed OPEC cuts to meet its fiscal responsibilities.In its monthly oil market report, OPEC estimates demand for its crude to average 30.30 million b/d in 2019, a fall of 1.05 million b/d on the year, signifying that oil inventories are going to decline sharply, pointing to a very tight market.
The U.S., Brazil, Russia, UK, Australia, Ghana, Sudan and South Sudan, will be the main drivers of supply growth this year, with U.S. crude production to rise by 1.46 million b/d in 2019 to 12.42 million b/d.“The highest incremental production is expected in the Gulf Coast, albeit at a slower pace compared to a year ago due to the pipeline constraints in Permian Basin,” it added.Venezuela reported a production figure of 960,000 b/d, down by a massive 472,000 b/d, as power outages and U.S.