“Over-production and a reduced increase in global demand are having their impact on oil prices despite OPEC and Russia’s planned cuts,” Natural Hydrocarbons Company CEO Charles Ellinas told New Europe on January 4, adding that this is driven in part by China’s slowing economy, but also due to concerns about the global economy.
He reminded that OPEC and Russia are expected to achieve their announced production cuts of 1.2 million barrels per day early in 2019 and the escalating crisis in Venezuela and Iran sanctions are likely to contribute to a further reduction. “But non-OPEC and US crude oil production and exports will carry on increasing, counteracting these. Added to this is pressure from (US) President (Donald J.) Trump on Saudi Arabia to produce more oil to offset the impact of sanctions on Iran,” Ellinas said.
Full article available: https://www.neweurope.eu/article/slower-global-economic-growth-can-lead-to-lower-oil-and-gas-prices-in-2019/