The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, U.S., November 22, 2019. Picture taken November 22, 2019. REUTERS/Angus Mordant
Oil prices fell on Wednesday, with Brent crude falling near $60 per barrel (~4 percent) before rebounding back to $62 at the time of writing.
Brent crude was down $2.15 to $63.01 per barrel and US West Texas Intermediate dropped $2.07 to $58.97 in a matter of hours, after OPEC projected that global oil supply will match demand in 2026.
The Organization of the Petroleum Exporting Countries said the shift from its earlier forecast of a supply deficit reflects rising production among OPEC+ members. Other commentators on crude stock said the outlook signaled a balanced market, hence the selloff.
Meanwhile, the International Energy Agency projected that oil and gas demand could continue to grow until 2050, diverging from its earlier estimate that oil demand would peak this decade.
Top exporters are now planning to pause production or slash exports to big markets for the time being to bring price movements to a cooling phase.