Baku, Azerbaijan, May 16
By Leman Zeynalova – Trend:
OPEC crude production rose by 65,000 barrels per day in April to 31.78 million barrels per day, as higher output from Nigeria and Saudi Arabia more than offset lower flows from Libya and Iran, the International Energy Agency (IEA) said in its May Oil Market Report.
“Crude production was down 535,000 barrels per day compared to April 2016. Year-to-date compliance with production cuts remained robust at 96 percent,” said the report.
This is while global oil supply fell by 140,000 barrels per day in April as non-OPEC, and especially Canada, pumped less, according to the IEA estimates.
“At 96.17 million barrels per day, output stood 90,000 barrels per day below a year ago, even as non-OPEC returned to growth,” said the report.
IEA estimates that in the second quarter of 2017, global refining activity slows down seasonally, lower by 370,000 barrels per day from the first quarter of 2017, but is set to ramp up by 2.4 million barrels per day by July-August.
Global demand growth is, however, still forecast at 1.3 million barrels per day in 2017, with demand at 97.9 million barrels per day, said the report.
“Growth was weaker than expected in the first quarter of 2017, however, with notable downward revisions seen in the US (where demand is essentially flat), Germany, Turkey and India (where the effect of the currency reform lingers on),” said the IEA.
Follow the author on Twitter: @Lyaman_Zeyn