Non-OPEC sup­ply fore­cast cut, cit­ing North Amer­ica and Ye­men

The China Post - - WORLD BUSINESS -

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

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