OPEC-Non-OPEC Considered 2019 Market Scenarios Including Demand-Supply Imbalances - Novak

ABU DHABI (UrduPoint News / Sputnik - 12th November, 2018) The Technical Committee of the Joint Ministerial Monitoring Committee (JMMC) of the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers has considered all possible scenarios in the oil market in 2019, including possible demand and supply imbalances ranging from 1 to 1.4 million barrels per day, Russian Energy Minister Alexander Novak said on Sunday following the committee's session in Abu Dhabi.

"The situation in the market is changing, and today, we had an opportunity to listen to the report of the Technical Committee, which presented its scenarios for the development of the situation, including for the winter period, and for 2019. There were different scenarios, including those that predict the demand and supply imbalances of 1 million barrels to 1.4 million barrels [per day]. At the same time, we mentioned today that there were a number of uncertainties that have a serious impact on the market, the ones we should continue monitoring in any case, which can significantly change the forecast," Novak said.

Novak added that Russia would work together with all signatories of the Vienna deal in order to maintain balance in the oil market.

"Russia is committed to implementing the agreements reached in December 2016 and in June 2018 in Vienna. If decisions are made that can be taken depending on the situation in the market, then, of course, Russia will act together with other countries so that the market remains balanced and stable," the Russian energy minister said.

Novak also said that there is already an oversupply and significant volatility in the oil market.

"I can say that a month ago the mood in the market indicated that there would be a shortage in supply, and everyone was talking only about who would cover this deficit ... Due to political factors, we see that there is already an oversupply in the market today, meaning that there is great volatility in the market," the energy minister added.

In 2016, OPEC and a number of non-cartel oil producers agreed to cut oil production by 1.8 million barrels per day. The deal came into effect in 2017 and has since been extended until the end of 2018.