On Monday (December 23), international oil prices fell, but remained near the three-month high hit recently. Market liquidity is scarce at the end of the year, which may exacerbate market volatility.
Stephen Innes, chief analyst of Asia markets at AxiTrader, said: “Oil prices will continue to benefit from the easing of trade relations, given that the global macro outlook is stronger than at any time last year. Both are good, and the oil market is currently well supported by both fundamentals and confidence.”
Will OPEC+ consider easing oil production restrictions at the March meeting?
Russian Energy Minister Novak said OPEC+ may consider easing production reduction requirements at the March meeting. At present, non-OPEC oil-producing countries such as OPEC and Russia have decided to start an additional 500,000 barrels per day of production cuts on January 1, which is expected to be maintained throughout the first quarter, which will bring the prescribed production reduction to 1.7 million barrels per day.
Russian oil production in 2019 is 560 million tons, and Russian natural gas output is forecast to be 737 billion cubic meters in 2019. Russia predicts that the construction of Nord Stream 2 will be completed in the near future, and compensation negotiations for the Druzhba Pipeline are still ongoing. The damage from the contaminated oil is still being calculated. Global oil prices have stabilized and global oil supply growth will slow down in 2020.
Kuwait may resume crude oil production on the border
Kuwait said the dispute with Saudi Arabia in the “neutral zone” is expected to be resolved by the end of this year . If the two countries can cooperate in local oil production, this will bring up to 500,000 barrels per day of crude oil supply to the market. The cooperative oil production project between Kuwait and Saudi Arabia in the neutral zone was suspended in 2014, mainly due to border disputes between the two countries.
However, regarding the regional situation, according to Iran’s Mahr News Agency, on December 23, local time, in the presence of Salehi, the head of the Atomic Energy Organization of Iran (AEOI), Arak The secondary circuit of the heavy water nuclear reactor begins operation. The Arak heavy water nuclear reactor, currently being redesigned, consists of two circuits. The first loop is tasked with removing heat from the heart of the reactor, and the second loop is responsible for transferring the heat from the first loop to the cooling tower and finally to the outside environment.
Is oil price expected to be flat in 2020? OPEC+ production cuts were offset by increased production in other regions
Data show that U.S. economic growth rebounded in the third quarter compared with the second quarter, and supported by a strong labor market, the economy is expected to improve in the fourth quarter Maintain moderate growth momentum.
Analysts pointed out that oil prices will remain suppressed in 2020 as the impact of OPEC+ production cuts will be offset by increased production in other countries and the demand outlook is mixed.
Analysts believe that oil prices will rise in the middle of the year as emerging market demand strengthens and OPEC+ production cuts reduce global inventories. Saudi Arabia surprised markets with deeper supply cuts in early December, and signs that a thaw in the U.S.-China trade conflict could boost demand led some prominent analysts to upgrade their oil price forecasts.
Data show that U.S. economic growth rebounded in the third quarter compared with the second quarter, and with the support of a strong labor market, the economy is expected to maintain moderate growth in the fourth quarter. </p
