It’s vital to examine oil demand-supply gap in 2019: Al Mazrouei

It is vital for oil producers to examine the potential gap between supply and demand in 2019, and how this might impact inventory levels, Suhail Mohamed Al Mazrouei, President of the Organization of Petroleum Exporting Countries (OPEC), said on Thursday.

“As we look forward to 2019, we see a new set of challenges. This includes the general consensus that prospects point to higher supply growth than expected global requirements and there are signs of a potential slowdown in demand,” Al Mazrouei, who is also the UAE Minister of Energy and Industry, said in his opening address in the 175th meeting of the OPEC conference in Vienna today.

“Today, it is vital that we thoroughly examine the potential gap between supply and demand in 2019, and how this might impact inventory levels and the extremely ‘hard won’ market balance we have achieved over the past two years,” he further added.

“I am confident that all Member Countries will continue to work with the OPEC Secretariat and our non-OPEC partners.”

Noting that this would require change in the strategy oil producers took in June 2018, the minister added: “We need to focus our joint efforts on maintaining the balanced market we achieved in 2018; sustaining the stability we all desire; and, ensuring that there is a firm foundation to allow the industry to make the necessary investments to continue to meet expected future oil demand.”