Opec rivals’ oil will meet demand

by a pronounced economic slowdown, and weakening institutional strength. It expected gross domestic product growth of 0.8% in 2017 and 1.5% in 2018, from 0.3% in 2016, well below the government’s target. – ANA NEW OIL supplies from rivals of the Organisation of Petroleum Exporting Countries (Opec) will be more than enough to meet the growth in demand next year, the International Energy Agency (IEA) said in its first forecast for 2018, an indication the cartel may need to extend its cuts.

The US, Brazil, Canada and other producers outside Opec will increase output next year by the most in four years, the IEA said. So, although the cutbacks should reduce the world’s bloated oil inventories to average levels by the time they are scheduled to end next spring, demand for Opec crude won’t be high enough for the group to reverse the curbs without seeing stockpiles rise again.

“Our first outlook for 2018 makes sobering reading for those producers looking to restrain supply,” said the Paris-based IEA, which advises most of the world’s major economies on energy policy. – Bloomberg