With the prospect of an ever-increasingly energy independent US coming closer to fruition, current energy products will have to cut output in order to keep prices at a suitably high level.
"In quantity terms, in 2019, the USA alone will grow its crude oil production by more than Venezuela's current output".
Most analysts expect that the OPEC+ supply curtailment deal will ultimately rebalance supply and demand and provide support for higher oil prices.
Also pressuring oil prices were sanctions that U.S. President Donald Trump implemented on Venezuela's oil exports in recent weeks, which has reduced supply from the global market.
The total world demand in 2018 was 1.47 million barrels per day increase to 98.78 million barrels.
"Our primary objective is to ensure that the oil market remains in balance throughout 2019 and beyond in order to build on the success of the past couple of years", the OPEC Secretary General said.
None of these options are appealing, and all of them are likely to result in higher costs for refined products, particularly the middle distillates such as diesel and jet fuel that are produced in greater quantities from heavy crudes.
Brent has struggled to sustain gains this month following its best ever start to a year on concern that booming shale output will undermine cuts by OPEC and its partners, and fears that the U.S. OPEC and other countries will either have to continue curbing extraction to maintain prices in the future or accept an energy independent USA and the likely oversupply of energy that would bring to the market. Venezuela has been trying to find new customers for its oil, but many world leaders have declined to purchase from the struggling country because it would anger Trump. But a shortfall of heavy-sour crude can cause complications for many refiners, such as those along the U.S. Gulf Coast, configured to process it. The group made a strong start to the strategy, slashing output by 930,000 bopd to the lowest in nearly four years, the IEA said.
The increase came despite falling net imports, which dropped to the lowest on record, as domestic crude production remained at peak levels for the fifth straight week.
Saudi Arabia plans to reduce its oil exports to 6.9 million barrels per day (bpd) in March, down from 8.2 million bpd past year, the country's energy minister, Khalid Al-Falih, announced yesterday. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news.