Global energy use experts have reduced their forecast of the amount of oil to be used per day around the world by 2014 – but still predict it will increase by 1.1million barrels per day.
The International Energy Agency cut forecasts by 100,000 barrels a day for next year, and by 30,000 barrels a day for the rest of 2013 due to lower than expected GDP forecasts.
But the agency said it non-OPEC production had seen global supply rise by 575,000 barrels a day month on month in July to nearly 92million, with growth expected to continue in North America to lift total supply in the first half of the year by 1.4million year on year to 55.4million barrels a day.
Open production dropped by 165,000 barrels a day month on month for July as the ongoing supply issues in Libya and Iraq took their toll on production, although output from Saudi Arabia was higher as the country’s domestic requirements were upped through air condition use.
An expected increase in demand for the third quarter of the year saw the IEA revise OPEC calls upwards to 30 milliom barrels a day.
Chinese oil demand is expected to remain stable despite a recent slowdown in the Chinese economy, as consumer inflation in the country and increased imports in crude gave hope of recovery.
Global refinery crude demands increased by the highest amount on record, up 3.1milliom barrels a day, in June, and are expected to rise further in July, with June runs up 2million barrels to 77.2million a day.
The IEA expects runs to rise to 77.3million barrels a day during the third quarter as maintenance demands and seasonal changes increase the amount required.
The publication of the IEA report saw Brent crude prices increase to nearly $107 a barrel this morning.
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