OPEC cuts 2020 oil forecast, urges effort to avert new glut

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"The installation of the necessary pipelines and terminals is continuing apace, which will ensure that the trend continues".

New York-traded West Texas Intermediate crude, the U.S. benchmark blend, was down $1.61, or 2.8%, at $55.79 per barrel by 12:52 PM ET (16:52 GMT) despite the U.S. Energy Information Administration reporting a crude draw of almost 7 million barrels last week, more than double the 2.7 million forecast by analysts. That lifted total exports of crude and products to almost 9 million b/d. The ongoing trade dispute also made it hard for USA shale shipments to find markets in recent months, the IEA said.

At the same time, Saudi Arabia cut back on both crude and refined product exports.

Speaking to CNBC in Abu Dhabi earlier this week, the US deputy energy secretary said President Donald Trump "often talks about energy dominance".

The agency retained its oil demand growth forecast of 1.1 MMbpd this year as the market continues to be whipsawed by the trade war between the US and China. Additionally, U.S. sanctions on Iran and Venezuela have reduced further bets on global supplies. World Markets are fragile, price of Oil getting too high.

The expansion in America's exports in June was helped by a surge in crude-oil shipments to more than 3 million barrels a day, the IEA said.

With the initial market reaction, the barrel of West Texas Intermediate erased a large portion of its daily gains and was last seen trading at $57.95, still adding 0.2% on the day.

Brent futures have tumbled more than 18% from a peak reached in April, with WTI down over 15% over the same period.

World oil stockpiles and supplies are plenty, according to the latest OPEC monthly report, despite the loss of more than two million barrels per day of Iranian oil exports.

The IEA said that, over the final three months of the year, the U.S. Though Russia said earlier this week that deeper cuts are now off the agenda, the International Energy Agency's balances suggest the group's current production levels won't be enough to prevent a return to inventory builds next year. For that to happen though, there needs to be no further deterioration in the economic climate or trade disputes, the agency said.

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