Global oil supply rose by 90 thousand barrels per day (b/d) in September as non-OPEC output edged higher with output of 97.5 million b/d standing 620 thousand barrels above that of September last year, according to the International Energy Agency’s (IEA) Thursday report.
According to oil market report, following very strong year-on-year demand growth of 2.2 million barrels per day (mb/d) in the second quarter of 2017, the pace slowed to 1.2 mb/d in the third quarter of 2017, reflecting relatively weak July and August data and the impact of hurricanes in September.
The IEA forecast for global demand growth remains unchanged at 1.6 mb/d in 2017 and 1.4 mb/d in 2018.
- Non- OPEC supplies to grow
In 2017, non-OPEC supplies are expected to grow by 0.7 mb/d, followed by a 1.5 mb/d increase in 2018.
In the meanwhile, OPEC crude output was virtually unchanged in September as slightly higher flows from Libya and Iraq offset lower supply from Venezuela.
"Output of 32.65 mb/d was down by 400 thousand b/d compared to a year ago. Compliance with supply cuts for the year-to-date is 86 percent," according to the report, referring to compliance rates of OPEC's oil production cut pact.
In addition, despite the strong performance seen in the second quarter of 2017, growth slowed to 1.2 mb/d in the third quarter of 2017, reflecting relatively weak, preliminary July and August data and the expected impact of hurricanes Harvey and Irma in September.
"Demand is expected to bounce back in the fourth quarter of 2017, expanding by 1.7 mb/d year-on-year, assuming normal northern hemisphere winter temperatures," the report underlined.
(Anadolu Agency)
