Gloomy months lie ahead of Nigeria and other crude oil exporters as OPEC on Monday forecast lower demand for crude next year. The forecast came as rival producers, such as the United States pump more and top oil exporter Saudi Arabia, eager to avoid a return of oversupply, had cut production.
The higher prices that have followed the OPEC-led deal have prompted a surge of U.S. shale and other non-OPEC suppliers. OPEC expects non-OPEC supply to expand by 2.13 million bpd next year, 30,000 bpd more than forecast last month
In a monthly report, the Organization of the Petroleum Exporting Countries said the world will need 32.05 million barrels per day (bpd) of crude from its 15 members in 2019, down 130,000 bpd from last month’s forecast.
The drop in demand for OPEC crude means there will be less strain on other producers in making up for supply losses in Venezuela and Libya, and potentially in Iran as renewed U.S. sanctions kick in.
Crude LCOc1 edged lower after the OPEC report was released, trading below $73 a barrel. Prices have slipped since topping $80 this year for the first time since 2014 on expectations of more supply after OPEC agreed to relax a supply-cutting deal and economic worries.