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Demand for OPEC crude to continue dropping in 2019

Oil&Gas Materials 13 December 2018 17:30 (UTC +04:00)

Baku, Azerbaijan, Dec.13

By Leman Zeynalova – Trend:

Demand for OPEC crude will drop by 1.1 million barrels per day (mb/d) in 2018, as compared to 2017, Trend reports citing OPEC’s Monthly Oil Market Report (MOMR).

“Demand for OPEC crude in 2018 was revised down by 0.2 mb/d from the previous report to stand at 32.4 mb/d, 1.1 mb/d below the 2017 level. Compared with the last MOMR, 1Q18 and 2Q18 were unchanged, while 3Q18 and 4Q18 were revised down by 0.2 mb/d and 0.5 mb/d, respectively. When compared to the same quarters in 2017, 1Q18 was 0.2 mb/d higher, while the second and third quarters were 1.1 mb/d and 2.0 mb/d lower. The fourth quarter is expected to see a drop of 1.5 mb/d,” said the report.

The cartel said that according to secondary sources, OPEC crude production averaged 32.4 mb/d in 1Q18 and 32.2 mb/d in 2Q18, which is in line with demand for OPEC crude.

OPEC crude production stood at 32.6 mb/d in the third quarter, around 0.1 mb/d higher than demand for OPEC crude, the report reads.

This is while demand for OPEC crude in 2019 was revised down by 0.1 mb/d compared to the previous report to stand at 31.4 mb/d, which is 1.0 mb/d lower than the 2018 level.

“Compared with the last MOMR, 1Q19 and 2Q19 were revised up by 0.4 mb/d and 0.2 mb/d, respectively, while 3Q19 and 4Q19 were revised down by 0.3 mb/d and 0.7 mb/d, respectively. When compared to the same quarter in 2018, the first and second quarters are forecast to fall by 0.8 mb/d and 0.5 mb/d, respectively, while the third and fourth quarters are expected to fall by 0.9 mb/d and 1.8 mb/d, respectively,” said the cartel.

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