Global oil production is set to rise by more than 500,000 barrels a day as season declines in the North Sea are offset by production in the USA.
New figures from the International Energy Agency shows supply levels have fallen by 770,000 barrels a day in August to 91.59million barrels a day as declines among OPEC and non-OPEC countries take their toll.
But increased output from North America of light tight oil and synthetic crude in the last three months of the year are set to mark a 520,000 barrel a day rise on the second quarter of 2013.
Near-record output in Saudi Arabia offset the collapse of production in Libya, but was not enough to prevent a 260,000 barrels a day drop in August.
Oil prices rose to six month highs in the last month after disruption in Egypt and Libya was augmented by fears of military strikes in Syria.
“While the geopolitical storms in the Middle East and North Africa have yet to pass, easing fundamentals look set to lessen the pressure somewhat on market participants – at least for the next few months,” the IEA said.
Demand is expected to remain flat for the rest of the year, the IEA said, as stronger than expected deliveries during the summer offset current concerns and lead to an average demand of 895,000 barrels per day. Demand in 2014 remains on course to rise to 1.1million barrels per day.
Recommended for you
