By Kamila Aliyeva
The Organization of the Petroleum Exporting Countries (OPEC) raised the forecast for the volume of world oil demand in 2017 by 280,000 barrels per day - up to 96.77 million barrels, according to the OPEC updated report.
The world demand for oil in 2018, as expected by OPEC, will be 1.35 million barrels per day higher than in the current year, and amount to 98.12 million barrels.
For comparison, in August, OPEC predicted that world oil demand in 2018 will grow by 1.28 million barrels per day relative to the indicator of this year and reach 97.8 million barrels.
Total non-OPEC supply will amount to 57.8 million barrels in 2017. Non-OPEC supply growth in 2018 is expected at 1 million barrel per day, following a downward revision of 10,000 barrels per day to average of 58.8 million barrels per day, according to cartel.
“This is mainly due to the downward revisions in the Russian and Kazakh oil supply forecasts. The US, Brazil, Canada, UK and Congo are expected to be the key countries driving growth next year, as opposed to China, Mexico, Colombia, Azerbaijan and Oman, which are expected to see a further decline in oil supply,” the report said.
The cartel informed that according to secondary sources, total OPEC-14 crude oil production averaged 32.76 million barrels per day in August, a decrease of 79,000 barrels per day over the previous month.
“Crude oil output increased in Nigeria, while production showed declines in Libya, Gabon, Venezuela and Iraq,” the report said.
OPEC and other major oil producers such as Russia, Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Sudan, and South Sudan reached an agreement in December 2016 to remove 1.8 million barrels a day from the market.
OPEC and its partners decided to extend its production cuts till March 2018 in Vienna on May 25, as the oil cartel and its allies step up their attempt to end a three-year supply glut that has savaged crude prices and the global energy industry.
Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva
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