POST Online Media Lite Edition


OPEC hikes 2018 forecast for oil supply growth

Staff Writer |
OPEC said it expects demand for oil to grow faster than it originally expected in 2018, but the organization also sees supplies from beyond the producer group surging this year, driven by rising U.S. output.

Article continues below

The cartel said it now sees non-OPEC production growing by 1.4 million barrels per day, up 250,000 bpd from its estimate in its last monthly report. It expects nations outside OPEC to pump a total of 59.26 million bpd this year, 320,000 bpd higher than its last forecast.

"According to the most recent assessment, the steady oil price recovery since summer 2017 and renewed interest in growth opportunities has led to oil majors catching up in terms of exploration activity this year, both in the shale industry and offshore deep water," OPEC said.

On the demand side, OPEC said it now expects the world's appetite for oil to grow by 1.59 million barrels a day, up 60,000 bpd from last month's forecast. That would put total global oil consumption at 98.6 million bpd in 2018.

"Cumulatively, between 2015 and 2017, the world has added around 5 mb/d of demand for oil products on the back of healthy economic conditions globally and a relatively steady product price environment," OPEC said.

"In line with the existing overhang, the market is only expected to return to balance towards the end of this year," CNBC cited OPEC as saying.

What to read next

OPEC raises oil demand forecast for 2014
OPEC forecasts higher U.S. tight oil output in 2017
OPEC forecasts: Demand for oil will slide