The monthly OPEC report has offered some good news for oil bulls with an upward revision announced for both the current years oil demand. Opec : World Oil Demand to Rise By 1.42 million bpd in 2017.
An increase of 50,00 b/d, better than expected demand from industrialized nations in the West and China has led OPEC research arm to raise its oil demand growth estimate for 2017 to 1.42 million barrels per day.
Opec : World Oil Demand to Rise By 1.42 million bpd in 2017
The adjustment mainly reflects better than expected data from OECD region for the 2017. Particularly OECD Americans and Europe, as well as China. Next year the world demand growth is now forecast at 1.35 million b/day, an increase of 70,000 from the previous report.
Non Opec oil supply is expect to grow by 0.78 mb/d in 2017, unchange from the last month due to offsetting revisions in Kazakhstan and US supply. In 2018 non Opec oil supply is forecast to grow by 1.0 million barrels/day.
A downward revision to Russia and Kazakhstan, Opec NGLs and non conventional liquids production are seen averaging 6.49 million barrels per day in 2018. Representing an increase of 0.18 mb/d, broadly in line with growth in the current year.
In August, Opec crude oil production decreased by 79 tb/d, according to secondary sources to average 32.76 million barrels per day.
In addition to based on the current global oil supply demand balance. Opec crude in 2017 is estimate at 32.7 million b/d. Around 0.5 million b/d higher than in 2016. However the Opec crude in 2018 is estimate at 32.8 million b/d, about 0.2 mb/d higher than in 2017.