By Srinivas Chowdary Sunkara // petrobazaar // 14th February, 2019.
IEA (International Energy Agency) released its monthly oil report yesterday. With reference to the latest publication, The IEA left its global oil demand growth estimates at 1.4 mb/d, Unchanged from its previous report. The Paris based agency said that the global oil market will struggle this year to absorb fast growing crude supply from non-OPEC suppliers even with the group's cuts and sanctions on Iran and Venezuela are in place. OPEC output was ripped lower in January at 30.83 mb/d with an adherence rate of 86% and the crude supplies from non-OPEC producers is estimated to 1.8 million bpd in 2019 from 1.6 million bpd previously.
The agency is in opinion that the stocks in most markets are ample and spare production capacity is available. The imposition of sanctions on Venezuela could not push oil prices up alarmingly as the imposition of sanctions on Iran, Venezuela and cuts in OPEC supplies affected the supply of heavy, sour oil while light oil is under pressure. As the Venezuelan supplies dwindled and Saudi turned their attention to fast growing Asian markets, Canadian exports mainly heavier and sourer crude, poured into the Gulf to fill the gap. So in quality terms, it is more complicated. Quality matters.
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