The markets will be facing an oil glut in 2019 as supply will outpace demand.
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That’s according to the International Energy Agency.
The IEA, in its monthly report, kept its forecast for global demand growth for 2018 and 2019 unchanged from last month at 1.3 million barrels per day and 1.4 million bpd, respectively.
The agency did cut its forecast for non-OECD demand growth, the engine of expansion in world oil consumption.
Since October, the oil price has fallen to below $70 a barrel, its lowest in eight months.
The agency raised its forecast for oil output growth from countries outside the OPEC to 2.4 million bpd this year and 1.9 million bpd next year.
The prior estimate was 2.2 million bpd and 1.8 million bpd, respectively.
The IEA also cut its forecast for demand for OPEC crude by 300,000 bpd in 2019.