OPEC’s monthly oil market report has forecast that demand for their oil will pick up in the second half of the year.
The demand for OPEC crude is projected to increase from 2016 levels by around 0.3 million barrels per day (mb/d) to a daily total of 32 mb/d in 2017.
The report also said that after higher than expected growth since the beginning of the year, the forecast for global economic growth has been revised up to 3.4% in 2017.
Projected world oil demand growth for 2017 was unchanged at 1.27 mb/d to average a total of 96.83 mb/d.
Consumption by OECD countries is projected to grow by 0.23 mb/d in 2017, following offsetting revisions in the Americas and Asia Pacific.
The report also forecast that non-OPEC oil supply will grow slower than expected – by 0.84 mb/d this year – after a downward revision of 0.11 mb/d was made.
Lower output from Russia, Brunei, the Sudans and Kazakhstan offsetting higher growth in Canada and the UK contributed to this downgrading.
Projected US oil supply growth for 2017 was also revised down by 30 tb/d due to lower output than expected in the first quarter of the year.
Recommended for you
