Amid growing signs of an economic slowdown that has reduced consumption growth to low levels; the International Energy Agency (IEA) lowered its estimate of global oil demand growth in 2019 by 100,000 barrels per day (bpd) to 1.1 million bpd, and for 2020 cut its estimate by 50,000 bpd to reach 1.3 million barrels per day.

 Markets have fallen recently, despite production cuts by OPEC and its partners, who are collectively pumping about half of global supply.

The International Energy Agency said OPEC crude production fell 190 thousand barrels per day to 29.71 million barrels per day in July 2019, which is the lowest in five years.

 Saudi Arabia, the group’s biggest member, has said it may be willing to do more. The kingdom has approached other OPEC producers to discuss further solutions to counter the decline in oil prices.

The IEA report suggests that Riyadh and its allies next year may already need to increase production to maintain a balance between supply and demand. Oil markets will face a renewed surplus in 2020 amid continued growth from OPEC’s rivals, particularly US shale rigs.