The latest Oil Market Report by IEA suggests that the global demand growth for oil has been revised upwards to 1.6 million BOPD. This number has already included the effects of Hurricanes Irma and Harvey on the U.S. energy demand.

Demand up, supply down

IEA Revises Up Forecasts of Global Oil Demand Growth

Source: IEA Oil Market Report Sept. 13, 2017

“Global oil demand grew very strongly year-on-year in 2Q17, by 2.3 mb/d (2.4%). For 2017, we have revised upwards our growth estimate to 1.6 MMBOPD,” the IEA said. “Global oil supply fell by 720 kb/d in August – The first decline in four months cut supply to 97.7 mb/d,” the international OECD-sponsored agency said.

The industry has seen a reduction in negative effects from the hurricanes to hit the gulf coast compared to a decade ago, but the region is much more important to the global oil market as the exported volumes from the U.S. continue to increase, meaning the Gulf Coast’s importance will grow, the IEA said.

The global oil supply fell by 720 kb/d in August 2017 due to unplanned outages and schedule maintenance, mainly from non-OPEC countries. Also, OPEC crude output fell in August after renewed turmoil in Libya disrupted flows. This caused output to decrease by 210 kb/d to 32.67 million BOPD, and compliance rate in OPEC has increased to 82% from 75% in July. Due to the outages in Libya and higher crude demand, benchmark crude prices rose by $1-$3 per barrel.


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