Rise in Oil Price over OPEC’s decision on crude oil supply for 2020
- Journalist: Patrick Knight
Oil prices rose on Thursday even though Organization of the Petroleum Exporting Countries (OPEC) is yet to decide in December on the oil output for 2020. This rise in price has been due to production cuts in response to the sluggish demands and slowdown in economies globally leading to rising stockpiles in countries like United States. Both Brent and West Texas Intermediate (WTI) futures rose by 8 cents and 10 cents respectively on account of growing demand-supply concerns and OPEC members are likely to extend their production cuts in 2020 provided oil prices do not shoot up through the roof. While Saudi Arabia’s oil output fell by 660,000 bpd in September in lieu of attack on its oil facilities, China and US are in talks and great optimism to resolve their trade issues and come to amicable terms. On these grounds, OPEC has estimated its 2020 demand growth at 1.08 million bpd, leaving it unchanged in the latest report produced.