Baku, Azerbaijan, July 12
By Leman Zeynalova – Trend:
Non-OPEC oil supply is expected to average 59.54 million barrels per day in 2018, OPEC said in its July Oil Markey Report (MOMR).
“Non-OPEC oil supply growth in 2018 was revised up by 0.18 million barrels per day from the previous MOMR to average 59.54 million barrels per day, representing an increase of 2 million barrels per day year-on-year,” said the report.
The main reason for this upward revision was an upward adjustment for the US supply forecast, along with potentially higher supply from Russia in 2H18, said the cartel.
OPEC expects non-OPEC oil supply in 2019 to grow by 2.1 million barrels per day for an average 61.64 million barrels per day.
The US, Brazil, Canada, Australia, the UK and Kazakhstan are the main growth drivers; while Mexico, China and Norway are expected to see the largest declines.
The 2019 forecast is subject to many uncertainties, such as oil prices, investment and cash flows, hedging, cost inflation, taxes on production and unexpected production outages related to technical issues, delayed start-ups, pipeline capacities and maintenance.
In December 2016, at a meeting of oil producers in Vienna, 11 non-OPEC member countries, including Azerbaijan, agreed to cut oil production by a total of 558,000 barrels a day. The agreement was concluded for the first half of 2017 and was extended until the end of the first quarter of 2018 at a meeting on May 25, 2017.
At the last OPEC meeting in Vienna, the agreement was again extended until the end of 2018. Azerbaijan supported the decision.
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