• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days Cheaper prices due to renewables - forget it
  • 5 days e-cars not selling
  • 5 days If hydrogen is the answer, you're asking the wrong question
  • 5 days How Far Have We Really Gotten With Alternative Energy
  • 5 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
Suriname Prepares for South America’s Next Big Oil Boom

Suriname Prepares for South America’s Next Big Oil Boom

TotalEnergies' five major oil discoveries…

China’s Plan for Flooding the Market with Cobalt

China’s Plan for Flooding the Market with Cobalt

Chinese mining companies have sharply…

IEA: “2018 Might Not Be Quite So Happy For OPEC Producers”

While OPEC producers have decided to roll over the production cuts to the end of 2018, non-OPEC supply will increase more than previously expected, and total supply growth could exceed demand growth next year, the International Energy Agency (IEA) said in its monthly Oil Market Report on Thursday.

Although the ingenuity and flexibility of the U.S. shale patch are challenging precise forecasts, when IEA’s outlook for U.S. crude oil production is added to the forecasts for other producers, non-OPEC production could increase by 1.6 million bpd in 2018, which is an upward revision of 200,000 bpd compared to last month’s report, the Paris-based agency said today.

“On considering the final component in the balance - non-OPEC production - we see that 2018 might not be quite so happy for OPEC producers,” the IEA noted.

The agency’s current outlook for 2018 “may not necessarily be a happy New Year for those who would like to see a tighter market”, as total growth in supply could exceed demand growth, which is currently expected at 1.3 million bpd for 2018. In the first half of 2018, global oil surplus could be 200,000 bpd before reverting to a deficit of around 200,000 bpd in the second half next year, “leaving 2018 as a whole showing a closely balanced market,” according to the IEA.  

“A lot could change in the next few months but it looks as if the producers’ hopes for a happy New Year with de-stocking continuing into 2018 at the same 500 kb/d pace we have seen in 2017 may not be fulfilled,” the IEA said.

Related: 'Perfect Storm' Wreaks Havoc On Europe’s Energy Market

Oil prices were seesawing on Thursday, wavering between gains and losses, after the EIA reported on Wednesday a draw of 5.1 million barrels of crude last week, but another build—by 5.7 million barrels—in gasoline inventories. Weekly U.S. field production of crude oil jumped to another high last week, to 9.780 million bpd, EIA data showed.

At 12:21p.m. on Thursday, WTI Crude was up 0.30 percent at $56.77 and Brent Crude was up 0.56 percent at $62.79

ADVERTISEMENT

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Kirsten Hansen on December 14 2017 said:
    The IEA tries once again to quell panic. Now a good time to put in that 100 gallon diesel tank in the back yard.

    They should be concerned with Bitcoin draining the world banks cash reserves.

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News