The expansion of oil production in the world, much helped by the US, will probably exceed demand increase in 2018, today the International Energy Agency said.
The agency adjusted its prediction for this year’s oil demand rise to 1.4 mln barrels daily, up from the last estimate of 1.3 mln, considering that the IMF lifted global economic expansion forecast for 2018 and 2019.
Last year demand for oil moved up at a pace of 1.6 mln barrels a day, according to the agency’s market report. The robust growth of production, especially in the US, could easily outstrip demand hike of any amount and help drive up world oil inventories, which are near the average of five years.
US crude production added a whopping 846,000 barrels a day during the three months to November and is going to surpass Saudi Arabia’s output shortly, and over the course of the year, it could even take the first position in the world, leaving Russia behind, the IEA said.
US production can attain 11 mln barrels daily before the end of 2018, as US Energy Information Administration’s analysis shows.
Oil inventories of the globe’s wealthiest countries declined by 55.6 mln barrels in the last month of 2017 to 2.851 bln barrels, the hardest monthly fall since February 2011, the IEA said.