The Organization of Petroleum Exporting Countries (OPEC) raised its forecast for world oil demand in 2018 by 60,000 barrels per day from its previous month’s forecast to a total of 1.59 million barrels per day. This will lead to a total oil consumption of 98.6 million barrels per day this year.
Among the reasons for adjusting the forecast for the world demand are the growth in economic activity, the strong demand for fuel for transport needs, and the growing petrochemical industry.
The latest readings from OPEC show that in 2017 the oil demand was 97 million barrels per day, which is 1.6 million barrels more than the previous year. According to OPEC, demand this year will grow faster than originally expected. No significant change in the organization’s report is reported in January, as the price-restraint agreement remains in force, even though Iran has increased production in the first month of 2018.
The countries outside OPEC are expected to produce 59.26 million barrels this year, which is 320,000 barrels more than the latest forecast outlined in the organization’s report. More than half of this volume is due to the United States, according to forecasts.
The biggest pressure on oil prices is currently continuing to produce in the US, which, according to official data, reached production of 10.25 million barrels per day. Such volumes have not been produced in the largest economy in the world since the 1970s. The reserves in the US also reported an increase of 1.9 million barrels to 420.25 million barrels for the week to February 2.
The OPEC’s oil production in January dropped by about 8,000 barrels per day to just over 32.3 million barrels per day.
The second largest producer in Iran has increased production by about 30,000 barrels per day and Libya by 21,000 barrels. Saudi Arabia has increased its output by 23,000 barrels per day, but has continued to make the largest contribution to curbing supply.
In December, the global oil reserves were about 109 million barrels, which is above the average for the past five years.