The OPEC monthly oil market report was released on Monday, shedding light on decreased oil production among the member-states.
Oil Production in October
The members of the Organization of the Petroleum Exporting Countries (OPEC) have decreased the oil production by 151,000 barrels daily (tb/d) to average 32.59 million barrels per day (mb/d) in October, comparable to the 2016 level, mainly due to declines in output in Iraq, Nigeria and Venezuela, as the organization said in its report published Monday.
“Crude oil output increased in Angola, Libya and Saudi Arabia, while production showed declines mainly in Iraq, Nigeria, Venezuela, Algeria and Iran,” the organization’s monthly Oil Market Report for November read.
In particular, according to the OPEC data, crude oil output decreased by 131 tb/d to 4.38 mb/d in Iraq, and by 43.6 tb/d to 1.86 mb/d in Venezuela, while Nigeria’s production, which is exempt from oil cuts under the OPEC-non-OPEC deal, was down by 54.4 tb/d to 1.73mb/d in October.
In an effort to drive up oil demand and prices, as well as get rid of global crude stocks, OPEC and 10 other major oil producers agreed to limit its production by 1.8 mb/d starting from January 2017. The agreement was concluded for the first half of 2017, but in May was extended by another nine months until the end of March 2018.
Meanwhile, eleven out of 14 OPEC members that are participating in production quotas under the Vienna agreement have decreased their total production by 1.334 mb/d, up from the initially agreed-to 1.266 mb/d.
Global Demand Decrease
OPEC has increased its forecast for global oil demand by 74,000 barrels per day (tb/d) to average 96.94 million barrels per day (mb/d) this year any by 130 tb/d to average 98.45 mb/d in 2018, according to the organization’s monthly report, published Monday.
“World oil demand growth in 2017 was adjusted higher from the previous month by 74 tb/d, mainly to reflect better-than-expected data from China in 3Q17. As such, world oil demand growth for 2017 now stands at 1.53 mb/d to average 96.94 mb/d,” the organization’s monthly Oil Market Report for November read.
Meanwhile, total oil demand in 2018 is forecast to stand at 98.45 mb/d, with growth revised up by 0.13 mb/d to around 1.51 mb/d, due to improved expectations from OECD countries in Europe and Asia Pacific, as well as China, India and some African countries.
Oil Supplies by non-OPEC producers
Additionally, OPEC has revised downward its forecast for oil supply by non-OPEC producers by 94,000 barrels per day (tb/d) to total of 58.54 million barrels per day (mb/d) in 2018 and by some 20,000 tb/d to average 57.67 mb/d this year, according to the organization’s report published Monday.
“Non-OPEC supply in 2018 was revised down by 94 tb/d compared to last month’s analysis to average 58.54 mb/d, and now is expected to grow at a slower pace,” the organization’s monthly Oil Market Report for November read.
Meanwhile, the forecast for non-OPEC supply growth for 2017 has also been revised downward by 0.02 mb/d since last month’s assessment to 0.65 mb/d, to average 57.67 mb/d, according to the organization.
The OPEC Monthly Oil Market Report covers major issues affecting the world oil market and provides an outlook for crude oil market developments for the coming year. Moreover, the report provides a detailed analysis of key developments impacting oil market trends in world oil demand, supply as well as the oil market balance.
The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.