Non-OPEC supply forecast cut, citing North America and Yemen
The International Energy Agency on Wednesday cut its supply forecast for non-OPEC countries, citing downturns in North America and the “worsening conflict” in Yemen.
The Paris-based agency cut its 2015 forecast for non-OPEC output by 120,000 barrels a day to 630,000 bpd “on the back of a slightly more negative outlook for the U.S. LTO (light tight oil) production and Canadian non-oil sands output, and of the fallout from the worsening conflict in Yemen,” it said in its monthly report.
“According to our latest estimates, fighting in Yemen has halved production to about 60,000 bpd in April, from an already depressed level of roughly 120,000 bpd,” the IEA said.
In North America, the IEA cited “signs that U.S. LTO production month-onmonth growth will grind to a halt as early as May,” and noted a “continued drop in the number of oil rigs ... reductions in capital expenditures, and a credit crunch among LTO producers in the U.S.”
In Canada, the IEA pointed to “falling drilling rates and an increasing backlog