OPEC production levels below demand forecast


OPEC has announced that it has not changed its output target despite a higher demand forecast for the rest of the year.

The production ceiling has been set at 30M barrels a day, although the group predicts crude demand of 30.4M barrels in the next half year. The organization answered that rest of demand will be covered by production growth in countries outside the group.

Production is still facing challenges though, with turmoil enveloping Libyan output, Iran sanctions, and political unrest in Iraq.

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Comments (1)
  • dar43054
    , contributor
    Comments (1825) | Send Message
     
    Wow. Newsflash. The world is running out of oil? Try telling the WHOLE STORY!

     

    Expected growth in non-OPEC production reduces the call on OPEC crude required to balance the market!!

     

    Yes, OPEC reaffirmed the group's crude oil production target of 30m bbl/d that has been in place since December 2011. This target is slightly ABOVE the estimated 29.8m-bbl/d call on OPEC crude oil and global stocks during 2014.

     

    The expected 2014 average call on OPEC and global stocks is 0.3m bbl/d lower than in 2013, with an additional 0.2m bbl/d decline during 2015 to an average of 29.6m bbl/d. Growing non-OPEC supply, particularly from continuing tight oil production growth in the US, drives the expected easing of global oil market conditions and contributes to the forecast of moderate crude oil price declines, with Brent prices averaging $108/bbl in 2014 and $102/bbl in 2015, down from an average of $109/bbl in 2013.
    12 Jun 2014, 06:49 AM Reply Like
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