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14/12/2017 05:55 AST
Supply and demand in the global oil market are likely to balance out by the end of 2018 thanks to a pick-up in demand, notably from the transport sector, Organisation of the Petroleum Exporting Countries (Opec), said on Wednesday.
Demand is projected to grow by 1.51 million barrels per day (mb/d) next year, compared to an already higher-than-expected 1.26 million increase this year, to reach 98.45 mb/d, the Opec said in a monthly report.
“Expansion in the transportation sector is expected to provide the bulk of oil demand growth,” the report said.
Expected strong economic expansion across the world will also underpin industrial and construction fuel demand, the group said.
Opec’s own crude ouput is likely to edge up to 33.2 mb/d next year from 32.8 this year, a smaller increase than previously thought.
Opec and some non-members of the cartel, including Russia, last month extended an output cut agreement until the end of 2018 in the hope of re-balancing the oil market and underpinning the price of crude.
Non-Opec oil producers will pump around 990,000 barrels of crude per day more next year than this year as US shale oil producers ramp up output, the report predicted.
Meanwhile, oil prices rose on Wednesday as industry data showed a larger-than-expected drawdown in US crude stockpiles, while expectations for an extended shutdown of a major North Sea crude pipeline also continued to bolster markets.
Brent crude was up 42 cents at $63.76 a barrel by 1122 GMT. It had settled down $1.35, or 2.1 per cent, on Tuesday on a wave of profit-taking after the North Sea pipeline shutdown helped to send the global benchmark above $65 for the first time since mid-2015.
US West Texas Intermediate crude was up 41 cents at $57.55 a barrel.
Britain’s biggest pipeline from its North Sea oil and gas fields is likely to be shut for several weeks for repairs. On Wednesday morning, its operator said it was still considering repair options and reiterated that any repairs would take several weeks.
The Gulf Today
Ticker | Price | Volume |
---|---|---|
SABIC | 114.77 | 5,915,941 |
(In US Dollar) | Change | Change(%) | |
---|---|---|---|
Brent | 68.12 | -2.02 | -2.88 |
WTI | 63.51 | 0.5 | 0.79 |
OPEC Basket | 64.98 | -1.5 | -2.26 |
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