Riyadh — Mubasher: China and the US would lend significant support to global demand for oil this year, Saudi Arabia’s oil minister said.
However, it is too early to revisit output cuts led by the Organization of the Petroleum Exporting Countries (OPEC) along with Russia and its allies in the producer group’s next meeting in April, Khalid al-Falih told Reuters on Saturday.
Al-Falih expected total global oil demand to increase by around 1.5 million barrels per day (bpd).
“If you look at Venezuela alone you would panic, if you look at the US you would say the world is awash with oil. You have to look at the market as a whole. We think 2019 demand is actually quite healthy,” al-Falih told the London-based news agency.
The oil-rich kingdom’s minister said Chinese demand was breaking records month after month and estimated the Asian country would consume up to 11 million barrels per day (bpd) this year, according to Reuters
The kingdom’s oil production in April was projected to remain at this month’s level of 9.8 million bpd, he noted.
“Aramco is finalising their April allocations today or tomorrow so we will know more on Monday. But my expectation is that April is going to be pretty much like March,” the Saudi minister told Reuters.
OPEC last December agreed with Russia on significantly cutting oil production in a bid to clear a global supply glut.
OPEC along with Russia and its allied producers would reduce crude output by a collective 1.2 million barrels per day (bpd) as of 2019.
