The International Energy Agency said Thursday OPEC would need to boost its output in the third quarter by some 900,000 b/d from April's level to meet rising global demand, and warned that OECD oil stocks remained tight by historical standards.
In its latest monthly oil market report, the IEA also raised its global oil demand forecast for 2014 by some 65,000 b/d to 92.8 million b/d, but cut its forecast for non-OPEC supply growth.
Article: http://www.platts.com/latest-news/oil/l ... y-26789113
Why is oil price so high?
Why is oil price so high?
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Why is oil price so high?
If not for the production growth from the U.S. shale plays, this world would be in big trouble and crude oil prices would be spiking toward $200/bbl. IMO we will see $200/bbl within five years. - Dan
NON-OPEC SUPPLY
The IEA also reduced by 100,000 b/d its estimate of non-OPEC oil supply growth for 2014.
"Overall non-OPEC production is now expected to grow by about 1.5 million b/d for 2014 as a whole, roughly 100,000 b/d below last month's forecast," it said.
"The downward revision is due to lower forecasts for Azerbaijan, China, Colombia, Kazakhstan, Mexico and South Sudan, which more than offset upward revisions among a number of producers, including Brazil and Russia," it said.
Total non-OPEC supplies are expected to average 56.1 million b/d in 2014.
Non-OPEC supply fell by about 550,000 b/d in March, amid lower output in nearly every region outside of Latin America, the IEA said.
"Even OECD Americas production edged marginally lower as an increase in the US of roughly 120,000 b/d month-on-month only partially offset declines in Canada (-185,000 b/d) and Mexico (-20,000 b/d)," it said.
Disruptions in Colombia, the Middle East and Africa contributed to the overall drop.
Non-OPEC production is estimated to have recovered somewhat in April, with supplies increasing about 285,000 b/d to 55.8 million b/d.
NON-OPEC SUPPLY
The IEA also reduced by 100,000 b/d its estimate of non-OPEC oil supply growth for 2014.
"Overall non-OPEC production is now expected to grow by about 1.5 million b/d for 2014 as a whole, roughly 100,000 b/d below last month's forecast," it said.
"The downward revision is due to lower forecasts for Azerbaijan, China, Colombia, Kazakhstan, Mexico and South Sudan, which more than offset upward revisions among a number of producers, including Brazil and Russia," it said.
Total non-OPEC supplies are expected to average 56.1 million b/d in 2014.
Non-OPEC supply fell by about 550,000 b/d in March, amid lower output in nearly every region outside of Latin America, the IEA said.
"Even OECD Americas production edged marginally lower as an increase in the US of roughly 120,000 b/d month-on-month only partially offset declines in Canada (-185,000 b/d) and Mexico (-20,000 b/d)," it said.
Disruptions in Colombia, the Middle East and Africa contributed to the overall drop.
Non-OPEC production is estimated to have recovered somewhat in April, with supplies increasing about 285,000 b/d to 55.8 million b/d.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group