Baku, Azerbaijan, June 6
By Elena Kosolapova – Trend:
The World Bank expects moderate growth in global oil consumption in 2017-2018, the bank said in its Global Economic Prospects report published in June.
“Global oil consumption is expected to grow at a moderate 1.4 percent in 2017-18 despite global growth gathering momentum,” the bank said.
The bank noted that global oil production declined in early 2017 as a result of the implementation of cuts agreed in November 2016 by some Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil producers. However, these cuts were partly offset by stronger-than-expected shale oil production in the US, following steep productivity improvements. The report says that a rebound in drilling activity doubled the US oil rig count from its 2016 low.
“As a result, oil inventories remain high, particularly in the United States—a key factor behind persistent weakness in oil prices,” the bank said.
According to EIA, global oil consumption hit 96.74 million barrels of oil per day in 2016 and is expected to reach 98.3 million barrels of oil per day in 2017.