This year, Saudi Arabia had its oil facilities attacked by drones. Being the world’s largest crude exporter, the country halved its oil output, reducing global oil production by 5%. OPEC+ also decided to deepen production cuts in hope to support oil prices.
On the other side of the globe, the US saw its crude production booming, mostly due to the shale oil output expansion. However, there are indications that this growth may slow down or even reverse in 2020.
In the meantime, the US-China tensions have weakened the global oil demand. Although it is still increasing, analysts predict an annual growth rate below 1% for the first time since the price crash in 2014.
Finally, the US presidential election in 2020 will have its mark on the oil market as well. Donald Trump bets on lower oil prices to attract voters, so his victory won’t be good for prices. All in all, the presence of both positive and negative factors allows to expect that next year oil will mimic the dynamics of 2019.