Oil surplus shrinks

LONDON. — The global oil surplus is beginning to shrink due to stronger-than-expected European and US demand growth, as well as production declines in OPEC and non-OPEC countries, the International Energy Agency said yesterday.

The agency, which coordinates energy policies of industrial nations, raised its 2017 global oil demand growth estimate to 1,6 million barrels per day (bpd) from 1,5 million bpd.

“OECD demand growth continues to be stronger than expected, particularly in Europe and the US,” the Paris-based IEA said.

“Based on recent bets made by investors, expectations are that markets are tightening and that prices will rise, albeit very modestly,” the IEA said.

Robust demand in industrialised countries was a key factor behind global demand growing 2,3 million bpd in the second quarter, the highest quarterly yearon-year rise since mid-2015.

On the supply side, global oil output fell by 0,72 million bpd in August due to unplanned outages and scheduled maintenance in OPEC member Libya as well as non-OPEC states such as Russia, Kazakhstan, Azerbaijan and Mexico, as well as in the North Sea.

It was the first fall in global production in four months. OPEC’s crude output fell in August for the first time in five months on renewed turmoil in Libya, with the cartel’s production decreasing by 0,21 million bpd to 32,67 million bpd.

The 12 members of OPEC bound by a supply-cutting pact raised their compliance to 82 percent in August from 75 percent in July. Reuters.