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Demand for OPEC crude to drop in 2018, 2019

Oil&Gas Materials 19 November 2018 15:42

Baku, Azerbaijan, Nov.19

By Leman Zeynalova – Trend:

Demand for OPEC-15 crude in 2018 was revised down by 0.1 million barrels per day (mb/d) from the previous report to stand at 32.6 mb/d, 0.9 mb/d lower than the 2017 level, OPEC said in its Monthly Oil Market Report (MOMR).

“Compared with the last MOMR, 1Q18 and 4Q18 remain unchanged, while 2Q18 was revised up by 0.1 mb/d. By contrast, 3Q18 was revised down by 0.4 mb/d,” said the cartel.

OPEC data shows that when compared to the same quarters in 2017, 1Q18 was 0.2 mb/d higher, while the second and third quarters were 1.0 mb/d and 1.8 mb/d lower.

“The fourth quarter is expected to see a drop of 0.9 mb/d. According to secondary sources, OPEC crude production averaged 32.4 mb/d in 1Q18 and 32.2 mb/d in 2Q18, respectively, which is in line with demand for OPEC crude. OPEC crude production stood at 32.6 mb/d in 3Q18, around 0.1 mb/d lower than demand for OPEC crude,” said the report.

This is while demand for OPEC-15 crude in 2019 was revised down by 0.3 mb/d compared to the previous report to stand at 31.5 mb/d, which is around 1.1 mb/d lower than the 2018 level.

“Compared with the last MOMR, 1Q19 and 2Q19 were revised down by 0.3 mb/d and 0.1 mb/d, respectively, and 3Q19 and 4Q19 were revised down by 0.4 mb/d and 0.2 mb/d, respectively,” said the cartel.

OPEC said that when compared to the same quarters in 2018, 1Q19 and 2Q19 are forecast to fall by 1.2 mb/d and 0.6 mb/d, respectively, and 3Q19 and 4Q19 are expected to fall by 0.8 mb/d and 1.6 mb/d, respectively.

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