Baku, Azerbaijan, Feb.12
By Leman Zeynalova – Trend:
Non-OPEC oil supply growth in 2019 was revised up by 0.08 million barrels per day (mb/d) to average 2.18 mb/d, Trend reports with reference to OPEC’s February Monthly Oil Market Report (MOMR).
This is mainly due to a re-assessment on production forecast in the US Gulf of Mexico, according to the cartel.
“Total supply is now forecast to average 64.34 mb/d. The US, Brazil, Russia, UK, Australia, Kazakhstan and Ghana are the main drivers for next year’s growth, while Mexico, Norway, Canada, Indonesia and Vietnam are projected to see the largest declines,” said OPEC.
Preliminary data indicates that global oil supply decreased by 1.03 mb/d to average 99.32 mb/d in January 2019, compared with the previous month, according to the report.
OPEC believes that a decrease in non-OPEC supply (including OPEC NGLs) of 0.23 mb/d compared with the previous month was mainly driven by Canada, FSU and China.
Along with a remarkable decline in OPEC crude oil production of 797,000 b/d in January, this equates to a total decrease in global oil output of 1.73 mb/d year-on-year, said the report.
The 2019 non-OPEC supply forecast is faced with pipeline capacity constraints in North America, both in Texas and Alberta, as well as changes in the intensity of drilling and completion in the US shale industry, according to the cartel.
Follow the author on Twitter: @Lyaman_Zeyn