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OPEC increases forecast on world oil demand

10 August 2016 15:39 (UTC +04:00)

Baku – APA-Economics. World oil demand growth in 2016 now stands at 1.22 mb/d after a slight upward revision of 30 tb/d due to better-than-expected performances from OECD Europe and Other Asia in 1Q16 and 2Q16. Total oil demand is now pegged at 94.26 mb/d, APA-Economics reports citing to OPEC Monthly Oil Market Report.

In 2017, world oil demand is projected to grow at the same level projected last month, increasing by 1.15 mb/d from 2016 levels, and with total oil consumption hitting a new record of 95.41 mb/d.

Non-OPEC oil supply is forecast to contract by 0.79 mb/d in 2016 to average 56.13 mb/d, revised up by 90 tb/d m-o-m. Upward revisions due to higher-thanexpected oil production from the US, UK, Norway, India, Brazil, Oman and Ghana were seen mainly during 2Q16, which was partially offset by downward revisions in the forecasts for Australia, Brunei, Malaysia, Thailand, Russia, Kazakhstan and FSU others

Non-OPEC oil supply growth in 2017 was revised down by 40 tb/d this month and is expected to contract by 0.15 mb/d over the current year to average 55.97 mb/d. This revision was due to the 2016 base change and also partially due to a change in the UK production forecast.

Demand for OPEC crude in 2016 remains unchanged from the previous report to stand at 31.9 mb/d, which is 1.9 mb/d higher than the 2015 level. In 2017, the demand for OPEC crude is projected at 33.0 mb/d, in line with last month’s MOMR and 1.2 mb/d higher than this year. Preliminary data indicates that global oil supply increased by 240 tb/d in July to average 95.14 mb/d.