Baku, Azerbaijan, Sept.26
By Leman Zeynalova – Trend:
The "amazingly strong" global demand for oil this year, especially out of emerging market economies, is likely to continue, according to Janet Kong, Eastern Hemisphere Chief Executive Officer of integrated supply and trading at BP.
“The balance is definitely underway on the support from OPEC production cuts. We believe the process will likely continue into year-end. Demand is very strong and that provides a positive backdrop for the market,” she told CNBC TV channel.
Earlier, OPEC said in its September Oil Market Report that in 2017, world oil demand growth was revised higher by around 50,000 barrels per day (b/d).
The upward revision is a result of better–than-expected performance from OECD (Organization for Economic Co-operation and Development ) America and Europe in 2Q17, according to the report.
"Hence, world oil demand growth is now pegged at 1.42 million b/d, with total global consumption at 96.77 million b/d," said the cartel.
World oil demand growth for 2018 was also revised up by around 70,000 b/d from the previous month’s report; it is now anticipated to be 1.35 million b/d, with total global consumption of around 98.12 million b/d.
On May 25, OPEC member countries and non-OPEC parties, Azerbaijan, Kingdom of Bahrain, Brunei Darussalam, Kazakhstan, Malaysia, Mexico, Sultanate of Oman, the Russian Federation, Republic of Sudan, and the Republic of South Sudan agreed to extend the production adjustments for a further period of nine months, with effect from July 1, 2017.
The reductions will be on the same terms as those agreed in November.
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