OPEC said Monday global crude oil demand in 2018 will be stronger than anticipated, reaching 1.51 million barrels per day (MMBPD), which is 130,000 barrels per day (BPD) higher than it previously forecast, Kallanish Energy reports.
The revised estimate, published in its latest Monthly Oil Market Report (MOMR), reflects the improved expectations from OECD Europe and Asia Pacific, as well as China, India and some African countries. Total oil demand is projected to average 98.45 MMBPD in 2018.
The cartel also forecast non-OPEC supply will drop in 2018 to average 58.54 MMBPD, indicating a tighter market next year. The growth in supply outside the cartel was revised down by 70,000 BPD, to 870,000 BPD year-over-year.
Meanwhile, OPEC crude production is estimated at 33.00 MMBPD this year, which is 710,000 BPD higher than in 2016. In turn, 2018’s forecast is 460,000 BPD higher than this year, or 33.4 MMBPD.
“The global economic growth dynamic has continued its broad-based and relatively strong momentum,” OPEC said. “The ongoing momentum could still provide some slight upside potential.”
The 14-member cartel pumped some 32.59 MMBPD of crude in October, according to secondary sources. Production gains in Angola, Libya and Saudi Arabia, were offset by declines in Iraq, Nigeria, Venezuela, Algeria and Iran, which led to a decline of 151,000 BPD compared to the previous month.
Iraq’s crude production reportedly suffered the largest decline, at 131,000 BPD, followed by Nigeria’s 54,400 BPD drop and Venezuela’s 43,600 BPD production fall.