Non-OPEC oil supply expected to increase in 2017
Baku, Azerbaijan, Oct.21
By Leman Zeynalova – Trend:
For 2017, non-OPEC supply is projected to increase year-on-year beginning in the second quarter, for an annual rise of 0.4 million barrels per day, according to the Commodity Markets Outlook of the World Bank (WB).
Notable gains are expected in Brazil, Canada and Kazakhstan, with small increases in Ghana, Republic of Congo, Russian Federation and other countries, as past investments undertaken prior to the oil price collapse come on stream, according to the report.
Declines are expected mainly in China, Mexico, the North Sea, and the United States where higher-cost producers are cutting back production, said the WB.
Part of the near-term reduction would occur in any event, as Saudi Arabia usually reduces winter production by some 0.4 million barrels per day due to lower power generation requirements, according to the report.
“Should the Islamic Republic of Iran, Libya, and Nigeria raise production significantly in the next few months, cuts by other producers will need to be even larger to meet their overall targets,” said WB.