According to Reuters news reports, the gauges seem to anticipate the requirement for maker club OPEC and its partners to diminish production in order to maintain the market in spite of broadening their current settlement, estimating a fall sought after for OPEC unrefined to just 28 million barrels for each day (bpd) in mid-2020.
Booming U.S. oil production and ongoing worries about a global slowdown in demand will keep markets awash in a glut of crude, likely keeping oil and gasoline prices down through 2020, the International Energy Agency predicted in its oil market report Friday.
"Clearly, this presents a major challenge to those who have taken on the task of market management", the IEA said in its report.
'Clearly, this presents a major challenge to those who have taken on the task of market management, ' it added, referring to the Organisation of the Petroleum Exporting Countries and producer allies such as Russian Federation.
"There are indications of deteriorating trade and manufacturing activity".
Of course, also causing trading trepidation are the growing tensions between Iran and the West: Tehran on Friday said Britain was playing a "dangerous game" after last week's seizure of an Iranian tanker on suspicion it was breaking European sanctions.
The energy agency said the "main message" of its report was that oil supply in the first six months of 2019 had exceeded demand by 0.9 million barrels per day. "For now, maritime operations in the region are close to normal and markets remain calm due to economic weakness, high oil stocks and a significant spare production capacity cushion". Despite rising tensions between the US and Iran, supply disruptions in major producers like Venezuela, Libya, Russia and Mexico, and surging demand amid the height of the USA summer driving season, Brent crude oil - the benchmark for global prices and a bellwether for USA gasoline - was hovering around $66 per barrel as of Friday morning, about $10 lower than the same point past year.