Saudis cut production, Russia's moves less clear - IEA

Friday, 18. January 2019 11:20

The International Energy Agency (IEA) reported on Friday that leading oil producers have "restated their commitment to cut output and data show that words were transformed into actions," adding, however, that "while Saudi Arabia is determined to protect its price aspirations by delivering substantial production cuts, there is less clarity with regard to its Russian partner." According to the report, the impact of higher prices of oil in 2018 is diminishing and will help offset lower economic growth.

The Agency stated that the US "will once again be a major factor in 2019" as it remains "the world's biggest liquids producer." The report further added that "by the middle of the year, US crude output will probably be more than the capacity of either Saudi Arabia or Russia."

The IEA also said that the oil demand growth in 2018 and 2019 remains unchanged at 1.3 and 1.4 million barrels per day, respectively.

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