Global oil production increases in March

World oil production increased by more than 0.4%, or around 410,000 barrels per day (bpd), to nearly 102.35mn bpd in March, with a recovery in the US production, according to the International Energy Agency's (IEA) latest report.

According to the energy agency’s Oil Market Report for March, crude oil production by the Organization of Petroleum Exporting Countries (OPEC) increased by approximately 110,000 bpd in March to 27.05mn bpd.

The group's total oil production reached approximately 32.51mn bpd over the same period.

Daily oil production in nonOPEC countries rose by 410,000 bpd in March to an estimated 69.84mn bpd as production recovered from steep North American weather-related losses in January.

'The United States and Canada accounted for 200,000 bpd of the monthly gains, while output in China and Norway rose by 60,000 bpd and 40,000 bpd, respectively,' the report said.

According to the report, world oil demand growth continues to lose momentum with the first quarter of 2024 growth of 1.6mn bpd, 120,000 bpd below the previous forecast due to exceptionally weak OECD deliveries.

'With the POST-COVID rebound now largely complete, and vehicle efficiencies and an expanding EV fleet acting as further drags on oil demand, growth in 2024 and 2025 slows to 1.2mn bpd and 1.1mn bpd, respectively,' the IEA said.

The agency predicts that this year's global oil demand will be 103.17mn bpd, up almost 1.21mn bpd from the previous year.

Demand is expected to increase by 1.14mn bpd to 104.31mn bpd next year, according to the IEA.

OPEC sees robust demand

On the other hand, the Organisation of the Petroleum Exporting Countries (OPEC) said on Thursday that world oil demand will rise by 2.25mn bpd in 2024 and by 1.85mn bpd in 2025.

Both forecasts were unchanged from last month.

In its monthly report, OPEC predicted robust fuel use in the summer months and stuck to its forecast for relatively strong growth in global oil demand in 2024, highlighting an unusually large gap between predictions of oil demand strength.

Earlier this month, OPEC and its allies, known as OPEC+, agreed to keep oil output cuts in place until the end of June 2024.

As per OPEC’S forecasts, the world oil demand will rise by 2.25mn bpd in 2024 and by 1.85mn bpd in 2025