Global oil supply saw a month-on-month increase of 1.5 million barrels per day (mb/d) in October to 101 mb/d, according to data from the International Energy Agency (IEA) on Friday.
The increase was due to Saudi Arabia’s rapid recovery from attacks on its energy sector on Sept. 14, according to the IEA's Oil Market Report.
Total OPEC crude output rose by 1.06 mb/d to 29.91 mb/d, and according to the agency, 'bounced back from a 10-year low in October after Saudi Arabia swiftly restored supply lost following attacks on its oil sector.'
According to the IEA, OPEC+ countries will face a major challenge in 2020 as demand for their crude is expected to fall sharply.
During the first half of 2020, the call for OPEC crude will also fall to 28.2 mb/d versus 30.2 mb/d in fourth quarter of 2019. The call on OPEC crude in 2020 overall is estimated at 28.9 mb/d, 1 mb/d below current production levels.
The agency recalled that a number of Russian producers have already signaled that further cuts could undermine investments in new upstream developments and derail longer-term supply targets.
For 2020, non-OPEC output growth is set to increase from 1.8 mb/d this year to 2.3 mb/d in 2020.
By Gulsen Cagatay