Production outside of OPEC has started to show more significant signs of rolling over recently, with U.S. production falling below 9.0 MMBOPD for the first time since 2014. Global oil supplies fell 0.3 MMBOPD in March to 96.1 MMBOPD, according to information from the IEA. Along with the fewer supplies is slowing demand growth as well, though, said the IEA.
Growth in global oil demand will fall to about 1.2 MMBOPD in 2016, the agency said in its monthly report. Last year, demand grew by 1.8 MMBOPD. Information from the first quarter of the year already shows signs of cooling off, with demand growing 1.2 MMBOPD in Q1’16 after growing by 2.3 MMBOPD and 1.4 MMBOPD in Q3’15 and Q4’15, respectively.
On the supply side, the IEA not expects supply to grow 0.2 MMBOPD, down significantly from 1.7 MMBOPD in 2015. The agency said the outlook for OPEC is largely unchanged since its previous report, with the group averaging 710 MBOPD less than last year at 57 MMBOPD.
Commercial stocks in the OECD continued to build through the end of the winter season when they are typically drawn down. Stocks reached 3,060 MMBO after growing 7.3 MMBO in February.
