"While oil demand is expected to grow at a moderate pace in 2019, it is still well below the strong growth expected in the non-OPEC supply forecast for this year".
The United States is set to drive global oil supply growth over the next five years, adding another 4 million barrels per day (bpd) to the country's already booming output, the IEA outlook noted. A meeting between President Donald Trump and President Xi Jinping to sign an agreement to end their trade war won't occur this month and is more likely to happen in April at the earliest, three people familiar with the matter said.
The U.S. bank said January global crude oil demand growth was "nearly 2.0 million barrels per day, with strength visible in both emerging markets and developed economies".
The IEA, on the other hand, foresees that OPEC countries will reduce their production to 380,000 barrels per day by 2024 such that the global oil prices will not decline.
Meanwhile, a weekly report by the U.S. Energy Information Administration (EIA) said U.S. commercial crude oil inventories fell last week as refineries hiked output.
Oil prices rose yesterday, driven by OPEC's current production restrictions and USA sanctions against Iran and Venezuela.
This ongoing revolution "will see the United States account for 70pc of the rise in global oil production and some 75pc of the expansion in LNG trade over the next five years, shaking up in the process, the worldwide oil and gas trade flows, with profound implications for the geopolitics of energy", Birol pointed out. We will observe the economic-political consequences of the USA cornering Saudi Arabia, Iran and Venezuela in the global oil game.
"The market is taking a pause as it tries to digest mixed reports that give us different ideas of future supply and demand", said Phil Flynn, an analyst at Price Futures group in Chicago.
With production in Canada also increasing, and most of its exports moving to U.S. refineries, more USA crude should be available for export. 'This highlights the continued shared responsibility of all participating producing countries to avoid a relapse of the imbalance and continue to support oil-market stability in 2019. With increasing competition, the global demand for OPEC production will not return to pre-2016 levels during the period in question. The IEA report indicates that US energy growth will continue to meet 70 percent of the increase in global production capacity by 2024.
United States oil output is set to climb to 19.6mbpd by 2024 from 15.5mbpd a year ago, it said.
It was also reported that Saudi Arabia exceeded its reduction commitments to 170 per cent.
Energy markets are being buffeted by a number of economic crosswinds.
Speaking about Azerbaijan oil production indicators Azerbaijan exported 5.78 million tons of oil in January-February 2019, which is 58 percent more than in two months of a year ago, Trend reports with reference to the State Customs Committee of the country on Friday. The newspaper article also states that US energy gains will have a price for the environment and that Change.org has described the situation as a "climate disaster".