Russian Energy Minister Says Too Early To Predict Oil Oversupply For 2020

Positive shifts in the trade conflict between China and the United States have given hope that the global oil demand will not go down next year, but exact estimates are impossible to make, Alexander Novak, the Russian energy minister, told reporters on Tuesday

ASTRAKHAN (UrduPoint News / Sputnik - 23rd July, 2019) Positive shifts in the trade conflict between China and the United States have given hope that the global oil demand will not go down next year, but exact estimates are impossible to make, Alexander Novak, the Russian energy minister, told reporters on Tuesday.

The International Energy Agency (IAE) predicted in its July report that there would be an oversupply of oil in 2020 due to the increase in oil production in states that are not members of the Organization of Petroleum Exporting Countries (OPEC), especially the United States.

"I would not make such precise predictions right now because the market situation changes constantly. Obviously, we have a pretty balanced market at the moment, and the volatility is not high, as you see.

But then again, there are many unpredictable situations that could change this situation. We will continue watching and monitoring how the situation develops, and make the appropriate decisions," Novak replied, when asked if he agreed with the IAE's estimates.

During the July 1 OPEC meeting, the previously adopted supply cuts were extended until 2020. Nevertheless fears of oil oversupply remain as the global economy has slowed down due to trade wars between China and the United States. Even considering the instability in Venezuela and the unclear situation regarding Iran, the market might still be oversupplied, which poses a serious problem for OPEC countries.