World oil demand is seen growing faster than expected in 2018, thanks to a recovering global economy and helped by OPEC’s output cuts aimed balancing the market, the oil producers’ group said.
The Organization of Oil Producing Countries said in its latest monthly report that world oil demand is foreseen to reach 98.60 mb/d in 2018, representing growth of 1.59 mb/d — 60 tb/d higher than the previous month’s projections and mainly reflecting the positive economic outlook.
“Recently, healthy and steady economic development in major global oil demand centers was the key driver behind strong oil demand growth,” OPEC said.
World oil demand growth in 2017 is estimated to increase by 1.60 mb/d, representing an upward adjustment of some 30 tb/d compared to last month’s projections, mainly to reflect the continuing better-than-expected data in OECD Europe in 3Q17, OPEC said.
Total world oil demand stood at 97.01 mb/d in 2017, it added.
For 2018, the group revised its forecast for non-OPEC supply by 0.32 mb/d, to average 59.26 mb/d, representing growth of 1.40 mb/d, which was also revised up by 0.25 mb/d.
Non-OPEC supply in 2017 was revised up by 0.07 mb/d, mainly due to an upward revision in the OECD, to average 57.86 mb/d, representing growth of 0.86 mb/d, OPEC said.
Expectations for higher production in the US, UK and Brazil, as well as lesser declines in Mexico and China were the main reasons behind the upward adjustment.
“OPEC NGLs and nonconventional liquids’ production averaged 6.31 mb/d in 2017, up by 0.17 mb/d y-o-y. OPEC NGLs are expected to grow by 0.18 mb/d to average 6.49 mb/d in 2018,” the report said.
In January 2018, OPEC crude oil production decreased by 8 tb/d, according to secondary sources, to average 32.30 mb/d, it added.