OPEC confirmed reports that its crude oil production increase last month, reporting a daily rate of 32.869 million barrels, up by 172,600 bpd. Global commercial oil stocks in the OECD block stood at 3.033 million barrels, still above the five-year average by 252,000 barrels.
Libya, Nigeria, and Saudi Arabia were the main drivers behind the OPEC production increase, with Libya raising its output by 154,300 bpd – by far the biggest increase among the cartel’s members.
Nigerian oil production rose by 34,300 bpd to 1.748 million bpd, while Saudi Arabia’s went up by 31,800 bpd to 10.067 million bpd.
On the other hand, OPEC reported, based on secondary sources, Iraqi oil output fell by 33,100 bpd ion July, the biggest decline among OPEC members. The second-largest decline came from Angola, whose production fell by 19,300 bpd, and Venezuela’s output dropped by 15,800 bpd.
As for non-OPEC supply, the cartel revised its growth forecast for full-2017 to 780,000 bpd, down 28,000 bpd on the back of slower production growth in the Americas during the second quarter of the year. Total non-OPEC production of crude for this year is seen at 57.77 million bpd. The main drivers behind the increase will be the U.S., Canada, and Brazil, OPEC said, adding that their output will compensate for production declines in Mexico, China, and Colombia, among others. Related: Did BP Just Unlock A New Major Shale Gas Basin?
On the demand side, OPEC revised its full-2017 growth forecast by 100,000 bpd to 1.37 million bpd, thanks to stronger demand data for the second quarter of the year. Total global demand for this year is estimated at 96.49 million barrels daily.
Demand growth for 2018 is seen at 1.28 million barrels, with overall consumption of crude estimated at 97.77 million bpd. The bulk of the demand growth will come from non-OECD countries, which will account for 1.07 million bpd, while OECD countries will contribute 210,000 bpd.
By Irina Slav for Oilprice.com
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