Brazil’s oil production growth in the past few years has been poor, mainly due to maintenance, production reduction of old oilfields, delays in the commissioning of new production platforms, such as the TartarugaVerde oilfield, which was scheduled to start production at the end of 2017, until June 2018. But the industry believes that this year may be a turnaround year for Brazil’s oil production. The giant production platform P-67 operated by Brazilian National Petroleum Corporation and Shell has been put into operation in Lula Oilfield in early February. It may reach 150,000 barrels per day in the coming months. Brazil will launch several platforms in succession this year. The second platform is P-76. The daily processing capacity can also reach 150,000 barrels, and then P-68 and P-77.

From 2020 to 2023, Brazilian Petroleum will install ten large-scale production and storage platforms one after another. Brazil’s oil minister said that Brazil’s oil production would increase substantially, possibly the second largest increase among non-OPEC oil-producing countries. Last December, Brazil produced nearly 27 million barrels of oil equivalent per day, the same as Kuwait and Iran. The main output of Brazilian Yanxia Oilfield is medium-heavy oil, which is an ideal raw material for diesel oil refining. Due to the initiative of OPEC and Canada to reduce production, the United States also sanctioned Venezuela and Iran, resulting in a shortage of such crude oil on the market. If Brazil’s crude oil production increases substantially, it may affect OPEC’s output reduction effect, and then affect the trend of international oil prices.

Overdependence on crude oil has restricted the development of olefin industry in China. In order to alleviate the shortage of domestic olefin raw materials, the state has put forward the requirement that the diversification rate of olefin raw materials reach 20%. Under the guidance of national industrial policy, propane dehydrogenation, coal/methanol to olefin technology have risen, and new technologies for increasing propylene production, such as steam cracking, catalytic cracking, olefin conversion and propane dehydrogenation, have jointly formed a new pattern of diversification of olefin sources.

China’s ethylene industry has developed rapidly and its production capacity has increased rapidly, making it the second largest ethylene producer in the world after the United States. From 2014 to 2018, ethylene production capacity increased from 20.43 million tons per year to 25.2 million tons per year, with an annual composite growth rate of about 5.20%. There are more than 40 ethylene production enterprises in China. The naphtha cracking route involves 19.91 million tons of ethylene production capacity, accounting for 76% of the total ethylene production capacity in China. The other main sources are coal (methanol) to ethylene and ethane dehydrogenation.

With the diversified development of olefin raw materials, China’s polyolefin production capacity and output will continue to grow, self-sufficiency rate will continue to improve, diversified competition will further intensify; but at the same time, due to the insufficient supply of domestic high-end polyolefin products, it is heavily dependent on imports. Therefore, the high-end development of polyolefin products and the realization of import substitution will be the key direction of upgrading China’s polyolefin industry.

In recent years, our government attaches great importance to the healthy development of advanced polymer materials industry. As an important branch of advanced polymer materials, high-end polyolefin resins have received a lot of support in policy. According to the requirements of the 13th Five-Year Development Plan of New Chemical Materials Industry of Sinopec Federation, the advanced polymer materials industry will make further development in the next few years, especially in the future. The self-sufficiency rate will develop rapidly. According to Jin Lianchuang’s information, the average annual composite growth rates of four categories of high performance resins (including high-end polyolefins), special rubber, high-performance fibers and functional membrane materials in China’s advanced macromolecule materials industry are 8.83%, 8.99%, 26.19% and 7.19% respectively in 2018-2022.

In January of this year, China’s imports of some chemical products increased and its exports declined. According to customs statistics, in January 2019, the import volume of styrene in China was 395,421,000 tons, the average import price was about 1038.96 US dollars/ton, the import volume increased by 17.63% annually, the import volume increased by 75.28% year on year, and the cumulative import volume increased by 75.28% over the same period last year.

“The main reason for the large increase in styrene imports in January 2019 is the increase in imports from Saudi Arabia and Japan. “The total amount of styrene from Saudi Arabia in January 2019 was 103,750.67 tons, up 141.76% annually compared with that in January 2019, and the import volume of styrene from Japan was 82,161.09 tons, up 69.5% annually compared with that in January 2019,” said Zhang Xuemei, an information analyst at Longzhong. South Korea’s imports of styrene in January were 18647.32 tons, down 43.5% annually.

Reporters learned that at the end of December last year, due to strong winds, Jiangyin and other places were closed, resulting in delayed arrival of shipments, some shipments from Saudi Arabia and Japan were postponed to January customs declaration. “The main reason for the recent increase in Saudi imports is that China’s prices are relatively good and there is a certain lure of interest. Downstream mainstream factories have increased their purchases of styrene from stock. “Zhang Xuemei said that around December 25, 2018, the spot price of East China styrene once fell to 7750 yuan/ton, resulting in the willingness of some downstream and traders to copy the bottom, increased market buying gas and increased turnover. Some of the market supply flows to China. In Japan, after the completion of the overhaul, the supply of production resumed, the supply increased, and the export part was transferred to China.

According to statistics from the General Administration of Customs, in January 2019, the import volume of MTBE was 20.08 million tons, a ring-to-ring increase of 95.41.08%, a year-on-year increase of 329.35%, and the export volume of MTBE was 0.53 million tons, an increase of 25.86%. “In January, MTBE imports surged and domestic MTBE market prices rose first and then decreased. “Cui Zhen, an information analyst at Zhongyu, said that in early January, downstream users moderately replenished their warehouses and overall turnover improved. MTBE prices in Asia rose, but overall prices remained at a low level. The arbitrage window from Singapore to China remained open for a long time, and domestic entrepreneurs were more enthusiastic about imports. According to customs statistics, Qatar, Thailand and Malaysia were the main importing countries of MTBE in January, with imports of 0.93 million tons, 0.63 million tons and 0.49 million tons, accounting for 44.59%, 30.53% and 23.66% respectively. The imports from other countries were very small.

“In January, the export volume of MTBE decreased slightly compared with that of the previous year, with better domestic demand. The main reason for this is that the exporters’enthusiasm for MTBE decreased, but the overall export volume remained relatively high. “Cui Zhen said. According to customs statistics, the main export countries of China’s MTBE in January were Singapore, India and Japan, with the largest volume of MTBE exported to Singapore, amounting to 0.35 million tons, accounting for 65.76%, India and Japan accounting for 9.06% and 5.1%. In January, the main mode of export trade was general trade, accounting for nearly 100%, and a very small number of logistics goods in special regulatory areas. The main customs declaration place of enterprises was Tianjin, accounting for 64.36%, followed by Jiangsu and Anhui provinces, accounting for 10.08% and 7.53%, respectively.

In February, MTBE import arbitrage window is still mostly open, and the enthusiasm of importers is high. Cui Zhen expects that more shipments will arrive at the port. In February, MTBE import will continue to be at a high level, or will surpass January. MTBE export volume or stable narrow-range consolidation will not fluctuate greatly.

“In 2018, Asian liquefied natural gas (LNG) imports again exceeded expectations and absorbed increasing supply, especially in China.”

On March 13, Shell’s LNG Prospects Report 2019 (hereinafter referred to as the “Report”) showed that the global LNG imports increased by 27 million tons last year, of which China’s net LNG imports increased by 16 million tons, accounting for 59.26% of the global increase, ranking first in the world, followed by South Korea, Pakistan and India.

According to the General Administration of Customs, China imported 53.78 million tons of LNG in 2018, up 41.2% year on year.

“Over the past two years, the global LNG industry has benefited from strong growth in China’s demand market.” During the “Report” conference, Steve Hill, Shell’s global executive vice president, said in an interview with media such as Interface News.

China has become the world’s largest importer of natural gas. According to the data of China Petroleum Economic and Technological Research Institute, China’s natural gas consumption last year was 276.6 billion cubic meters, up 16.6% from the same period last year, and its natural gas import volume was 125.4 billion cubic meters, up 31.7%.

According to the report, in 2018, China’s imports of LNG accounted for 53% of the total natural gas supply, while domestic and pipeline imports accounted for 26% and 21% respectively.

From the perspective of China’s natural gas consumption industry, industry, civil and commercial accounts for 44% and 38% respectively. Secondly, electricity and transportation accounted for 11% and 7% of the total natural gas consumption, respectively.

According to Steve Hill, the challenge facing the global LNG industry is “highly predictable supply, but highly unpredictable demand”.

“There will be more new LNG projects in the next two years and very little supply in the next three years, but demand will continue to increase.” Steve Hill said that in LNG supply, sustained global investment is needed to meet the growth of long-term demand.

Shell expects to add 35 million tons of LNG worldwide in 2019, which will be absorbed by Asia and Europe. The global demand for LNG is estimated to be about 350 million tons in 2019 and 384 million tons in 2020, with an average annual growth rate of about 9.7%.

Last year, LNG’s new capacity for final investment decisions was 21 million tons, compared with a total of only 7 million tons in 2016 and 2017.

In the future, China will still be the most competitive country in LNG market. According to the report, China’s LNG import capacity may double in five years, and interconnection will greatly increase the utilization of receiving stations.

Previously, Liu Xiaoli, a researcher at the Energy Research Institute of the National Development and Reform Commission, predicted that China’s natural gas demand would approach 300 billion cubic meters by 2020 and 600 billion cubic meters by 2030.

In terms of specific supply, Australia’s LNG exports catch up with Qatar’s long-standing leader by the end of 2018, and its exports are expected to increase by 10 million tons in 2019.

In the next three years, the United States and Russia will be the fastest growing LNG supply countries in the world, and will also be major exporters.

At present, the price of natural gas in the United States is at the lowest level in the world. US LNG export price is linked to Henry Center (HH) price.

Last year, the annual average price of HH was $3.16 per million British heat units, 60.74% lower than the annual average price of NBP in Europe of $8.05 per million British heat units and 66.41% lower than the average import price of LNG in Northeast Asia of $9.41 per million British heat units.

China Petroleum Economic and Technological Research Institute has predicted that the LNG price of HH will be US$3 per million British heat units in 2019, the NBP price in Europe will be US$7.3 per million British heat units, and the spot CIF quotation of LNG in Northeast Asia is expected to fall, with an average price of US$8.5 per million British heat units.

“In LNG production structure, the United States is the most transparent country. If the price of a LNG project is not competitive, it is hard to say that it will succeed. Steve Hill said.

For comprehensive consideration, China and the United States have cooperated in the field of LNG.

In 2018, China imported 2.26 million tons of LNG from the United States, accounting for 4% of China’s LNG imports and 12% of U.S. LNG exports. China is one of the top three LNG export destinations in the United States.

According to the latest data from the Central Electric Power Administration of India (CEA), in February 2018, India’s power enterprises imported 5.1489 million tons of power coal, an increase of 26.82% over the previous year, and a decrease of 6.76% over the previous year.

Among them, 34458,800 tons are used for power plants directly using imported coal, and 170,310 tons are used for mixing with domestic coal.

In the same month, six state-owned power enterprises imported 905,200 tons of coal blended with domestic coal, and 16 private enterprises imported 797,900 tons. Among the imports of direct coal-fired power generation, one state-owned power enterprise imported 75.9 million tons and six private power enterprises imported 33.69 million tons.

In February, 34 Indian companies did not import any coal.

According to the data, Adani Power imported the most power coal in February, at 138.46 million tons, followed by Tata Group’s Mundra super-large power plant, with 1.035 million tons of imported power coal.

In the 11 months before FY 2018-19 (April 2018-February 2019), India’s power enterprises imported 55.3127 million tons of power coal, an increase of 6.3% over the previous fiscal year.

The Asian ABS market strengthened this week, with suppliers targeting higher prices on the grounds of rising raw material costs. Manufacturing activity in China, a key market, usually accelerated in the second quarter, and buying momentum would then increase, sellers said.

ABS spot prices rose to $1550 – 1660 a ton from last week, depending on the size and origin of the package, and some traders believe prices may have reached a temporary high.

Some sellers acknowledge that demand has not risen as dramatically as quoted prices. Although ABS buyers have resisted price increases in recent weeks, some buyers have returned to the market to replenish their inventories, fearing that prices may rise further.

“Supply has increased, but we have to see if demand really catches up in the near future,” said a producer based in Southeast Asia.

The price of styrene monomer, a key raw material, has remained stable in recent weeks, with CFR quoting slightly less than $1,100 per ton in China, while the price of acrylonitrile, another raw material, has soared as factories in Europe and the United States shut down.

ICIS data show that ACN spot prices rose to $1,750/ton in March and $1,400/ton in January.

A Taiwanese manufacturer said: “ACN prices have risen sharply in recent weeks, so most ABS manufacturers have to raise resin prices.” ABS resin is used in household appliances, toys, consumer electronic products, and also in automotive and construction fields.

Despite record inventories in China, the market expects the valuation of styrene monomers to remain stable in the coming weeks, which also gives ABS producers incentives to raise prices. A large number of styrene monomer equipment will start maintenance from March to June, which may lead to future supply constraints.

“The supply of styrene monomers is likely to tighten in the second quarter due to maintenance shutdowns,” said a resin trader in China.

The lack of specific announcements in the ongoing Sino-US trade negotiations continues to limit ABS demand, especially in China, where tariffs on household appliances were initially proposed.

Most buyers remain cautious and unwilling to overstock.

On March 14, Interface Journalists learned from the National Bureau of Statistics that in the first two months of 2019, the production of industrial raw coal above the scale of China declined year-on-year, the growth rate of crude oil and electricity production slowed down, but the production of natural gas maintained a relatively rapid growth.

In the first two months of this year, China produced 28.68 billion cubic meters of natural gas, an increase of 9.2%, an increase of 0.4 percentage points over the previous month, and an average daily output of 490 million cubic meters.

In January and February, imports of natural gas were 9.81 million tons and 7.57 million tons respectively, up 26.8% and 9.0%, and imports continued to grow rapidly.

There are more than 3000 enterprises engaged in the production of modified plastics in China, but there are only 70 enterprises with annual capacity of more than 3000 tons. With the expansion of market application, more and more enterprises will be attracted to increase production capacity in the future, which will lead to the expansion of the total market.

The application of modified plastics in China is just beginning

In the economic development of Germany, the proportion of plastic and steel applications is 63:37, 70:30 in the United States and 50:50 in the world. Compared with the mature development of modified plastics industry in foreign markets, China’s modified plastics industry started late, and the application of large-scale modified plastics has just started. Due to the limitation of production technology, the proportion of domestic modified plastics used in precision manufacturing industry is lower. At present, the application ratio of plastic steel in China is only 30:70, which is far below the average level of developed countries and the world. Considering that China is a big manufacturing country, with the sustained economic development and the continuous improvement of modified plastics technology, the future market demand for modified plastics will be huge.

Opportunities for enterprises lie in specialization

The enlargement of the total market volume may lead to the aggravation of product homogenization. When homogenization becomes more and more serious, the first movers in other fields have built barriers. If enterprises want to develop, they must further specialize in their own fields.

Automobile and household appliances are almost the indispensable place for every modified plastics enterprise. Compared with other modification enterprises, Nanjing Julong (300644. SZ) in the rail transit position, domestic modification enterprises are almost unmatched, which is also one of the reasons why Nanjing Julong has higher business income in recent years. Guangzhou Golden Fair Technology (600143. SH) and other enterprises with the main industries of modified plastics, fully biodegradable plastics, environmentally friendly high-performance recycled plastics, high-performance carbon fibers and composite materials will also usher in greater development opportunities.

Raw material manufacturers will benefit from this

According to Chinese Customs data, China imported 7.05 million tons of waste plastics in 2017, and imported 76,000 tons in 2018, down 99% year on year. Imports of plastics are blocked, and the recovery rate of waste plastics in China is also declining. China’s recycling industry development report (2018) shows that in 2017, China’s domestic recycling of waste plastics was 16.93 million tons, down 1.85 million tons from 2016, a decline of 9.9%.

The history of long-term import of waste plastics in China will be ended. The state’s restriction on import of waste plastics is irresistible. The shrinkage and long-term reconstruction of recycled plastics industry in the short term will become an inevitable trend. With the high pressure of environmental protection, the ban on foreign garbage, and the pressure brought by the function relief of big cities, the waste plastics recycling industry is facing the restructuring of the industry.

According to incomplete statistics, 80% of the domestic recycled plastics market is facing an embarrassing situation of environmental rectification or banning. A total of 28 cities provide tens of thousands of “scattered and dirty” enterprises to the Ministry of Environmental Protection.

Rising prices of recycled plastics materials have become a trend, and shortages have become normal. The whole imported waste plastics recycling and granulation industry may have a slim future, and millions of tons of raw materials need to find a new direction.

For most domestic importers, the promulgation of the ban will mean that they have to re-plan the procurement channels, regardless of the procurement content or source, will be a process of re-construction.

This operation has been defined as non-standard. Strictly speaking, the import of raw materials needs production capacity matching its application volume. Customs and other executing departments are also strictly checking the flow of waste plastics. Therefore, this type of enterprise must be transformed and upgraded. Some enterprises have taken precautions. When the ban was not promulgated, the source of raw materials has been changed from import 100% to domestic production. Most enterprises are still changing. Haitong Securities Research Report pointed out that as an important part of the domestic supply of plastic raw materials, the prohibition of imports will lead to shrinkage of the supply of plastic raw materials, and the domestic production enterprises of plastic raw materials are expected to benefit.

On March 5, the State Energy Administration issued the Circular on Establishing the Information Monthly Report System for Expanding the Production and Promotion of Biofuel Ethanol and Gasoline for Vehicles, which stated that it was necessary to establish the Information Monthly Report System and to keep abreast of the progress made by relevant provinces (regions, municipalities) and central enterprises in promoting the production and popularization of biofuel ethanol and gasoline for vehicles.

In fact, it has been less than one year since the target of “realizing the basic coverage of ethanol and gasoline in the whole country by 2020″ was put forward in the Implementation Plan on Expanding the Production and Promotion of Biofuel Ethanol, issued jointly by the National Development and Reform Commission and other 15 ministries. What is the progress of ethanol and gasoline promotion in China? Can the planning objectives be achieved? What problems still exist?

Development lag

Ethanol is the improver of clean fuel and oil quality. Ethanol gasoline (E10) with 10% fuel ethanol can increase the octane number of gasoline and reduce the emission of carbon dioxide and harmful substances such as particulate matter, carbon monoxide and hydrocarbons in vehicle exhaust. According to incomplete statistics, more than 40 countries and regions have promoted biofuel ethanol and automotive ethanol gasoline. The annual consumption of ethanol gasoline is about 600 million tons, accounting for about 60% of the world’s total gasoline consumption.

Fuel ethanol has been widely used in China since 2001. In 2002, pilot projects of fuel ethanol were launched in Heilongjiang and Henan provinces, and expanded in 2004. By 2018, China had been promoting ethanol gasoline in six provinces including Heilongjiang, Jilin, Liaoning, Henan, Anhui and Guangxi, and semi-closed in 31 cities of Hebei, Shandong, Jiangsu, Inner Mongolia and Hubei. In October 2018, Tianjin also successfully realized closed sales of ethanol and gasoline.

However, according to the reporter’s understanding, in the above pilot areas, in addition to the three northeastern provinces and Tianjin, the development of ethanol gasoline in other provinces and cities is not very good. Taking Guangxi as an example, since April 2008, ethanol gasoline for automobiles has been sold in closed sales in Guangxi. According to the data of the Development and Reform Commission of Guangxi Autonomous Region, the coverage rate of ethanol gasoline for automobiles reached 85.79% in 2009. However, the market share of ethanol gasoline gradually decreased, and the coverage rate dropped to less than 5% by 2017.

In view of the current development situation, many respondents expressed to reporters that it was “more difficult” to achieve the goal of “basic coverage of ethanol and gasoline by the end of 2020″.

According to Liu Lin, an analyst at Zhongyu, the development of ethanol gasoline is lagging behind. “The comprehensive promotion of ethanol and gasoline will inevitably lead to a sharp increase in the output of fuel ethanol, thus driving the whole ethanol industry to a better position. If the total coverage of ethanol and gasoline is achieved by 2020, the fuel ethanol market should be very hot now, but for the moment, the whole fuel ethanol market can only be said to be general. According to the current growth rate of fuel ethanol production, it will be difficult to achieve this goal next year.

Large gap in fuel ethanol

“At present, the promotion of ethanol gasoline is not ideal, the core reason is that there is a large gap in the supply of fuel ethanol.” Zhang Zhe, Senior Engineer of Marketing Institute of China National Petroleum Planning Institute, spoke frankly to reporters.

According to the data of China National Petroleum Planning Institute, the current production capacity of fuel ethanol in China is 2.89 million tons per year, while the current domestic gasoline consumption is about 130 million tons. According to the 10% addition ratio, if we want to achieve basic national coverage by 2020, the demand for fuel ethanol is about 13 million tons, with a gap of 10 million tons.

Among them, the economy of fuel ethanol production is the most important constraint.

It is understood that the main source of fuel ethanol raw materials in China is maize. In order to promote the development of biofuel ethanol industry, the Ministry of Finance has subsidized the production enterprises of biofuel ethanol relatively high. In 2009, COFCO Biochemical had enjoyed 2055 yuan/ton of raw material subsidies, and the production enterprises were more enthusiastic. Since then, however, subsidies have fallen sharply because of “fighting for grain with the people and grabbing land with grain”. On August 14, 2014, the Ministry of Finance issued the Notice on the Adjustment of Fiscal Policy on Biofuel Ethanol for Fixed-point Enterprises. The criteria for the continued subsidies of biofuel ethanol for approved projects using grain as raw materials are 300 yuan/ton in 2013, 200 yuan/ton in 2014 and 100 yuan/ton in 2015, and no subsidies will be provided after 2016. “In the past few years, the international crude oil price has gone down, while the ex-factory price of fuel ethanol in China has remained low due to its linkage with the price of refined oil. Its profitability is weak and it has no economy.” Liu Lin said.

Zhang Zhe also pointed out that under the superposition of many factors, the enthusiasm of fuel ethanol production enterprises declined. “Some enterprises have reduced the production of fuel ethanol, some of which are converted to edible alcohol, resulting in a lower and lower market share of ethanol and gasoline.”

Promotion schedule should be adjusted appropriately

According to Zhongyu information and statistics, 87% of the current fuel ethanol production in China comes from maize, 11% from cassava and sugarcane, and 2% from cellulose. Corn fuel ethanol production process, including aging rice, wheat and other crops, is the best raw material for fuel ethanol production because of digestible “problem grain” and “aging grain”, stable source of raw materials, mature production technology, and by-product corn oil, distiller’s grains protein feed (DDGS). However, its production capacity is restricted by the stock of aged grain such as corn in China, which is easy to cause worries about the food crisis. Therefore, Zhang Zhe said that the development of fuel ethanol should be tailored to local conditions and develop a diversified production process of ethanol raw materials.

It is reported that cassava and sugarcane have mature technology to produce fuel ethanol, and the production cost is low, but because of the small planting area, they rely more on imports. However, the solid fermentation technology with sweet sorghum as raw material has been commercially operated. Sweet sorghum can be planted on a large scale. The solid fermentation products are ethanol and distiller’s grains, which have no waste water and have large-scale production conditions. It is regarded as the most competitive ethanol raw material in the world.

In addition, cellulose, as the most advanced direction of ethanol production in biomass raw materials, has a wide range of sources of raw materials. It can make full use of crop straw to achieve waste utilization. However, at present, it is not mature in technology, and the cost of commercial process is very high, so large-scale production is not economically feasible.

“Biomass energy is the choice of energy diversification in the future, but the schedule should be adjusted timely according to the actual situation in the promotion process. At the same time, for raw materials in line with the national conditions, we should develop more new technologies and processes to maximize the benefits as far as possible. Like cellulosic ethanol, it should continue to develop, which is a good direction. In addition, because production costs will be affected by fluctuations in raw material prices and international crude oil prices, and the benefits are uncertain, enterprises can adopt more flexible production schemes, such as having the conditions to produce edible ethanol, fuel ethanol, or multiple products co-production.

According to Houston, the International Energy Agency (IEA) predicts that the United States will drive and lead the growth of global oil supply in the next five years, increasing the country’s already rapidly growing oil production by another 4 million barrels a day.

The IEA said that by 2024, U.S. oil production will rise from 15.5 million barrels a day last year to 19.6 million barrels. Total crude oil exports will double, which will lead to more intense competition in the global market, especially in Asia.

This prospect suggests that demand from the Organization of Petroleum Exporting Countries (OPEC) will be under pressure as the United States and other competitors expand their crude oil supply. However, the International Energy Agency believes that global oil demand has not yet peaked, which will boost the confidence of oil producers.

In its five-year outlook report, the IEA, which advises the United States and other industrialized countries on energy, said: “The United States is increasingly leading the growth of global oil supply, and oil production in other non-OPEC oil-producing countries has increased significantly, including Brazil, Norway and Guyana, the new oil-producing country.”

The US oil boom over shale oil runs counter to OPEC’s and its Russian-led partners’efforts to limit supply. The so-called OPEC + Group started a new round of cuts in oil supply in 2019 to support oil prices.