EIA sees OPEC+ deal prolonged till end of 2019

MOSCOW, Mar 12 (PRIME) -- The U.S. Energy Information Administration (EIA) expects OPEC and non-OPEC states to prolong the oil output cut deal until the end of 2019, the authority said in a research note on Tuesday.

In November 2016, OPEC and non-OPEC states including Russia first agreed to reduce their oil output to rebalance the market. In December 2018, the participants of the deal decided to cut production by an additional 800,000 barrels per day for OPEC and 400,000 barrels per day for non-OPEC states, including 230,000 barrels per day for Russia, from the level of October 2018.

The next meeting of the OPEC+ deal ministerial monitoring committee is scheduled for April 17–18.

The EIA also increased its forecast for the average Brent oil price in 2019 to U.S. $62.78 per barrel from $61.03 per barrel, and retained the price forecast for 2020 unchanged at $62 per barrel.

The forecast for growth of the world’s commercial oil stock was reduced to 0.2 million barrels per day in 2019 and 0.4 million barrels per day in 2020 due to lower production by both the OPEC states and the U.S.

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