World demand for OPEC crude in 2016 is estimated to stand at 31.8 mb/d, an increase of 1.8 mb/d over last year, the oil exporting organization projected in a new report Wednesday. The report noted demand for OPEC crude is forecast at 32.6 mb/d in 2017, a rise of 0.8 mb/d over the current year.
Meanwhile, the world oil demand in 2016 is seen increasing by 1.24 mb/d to average 94.40 mb/d, after a marginal upward revision of around 10 tb/d from the September MOMR, mainly to reflect the latest data.
"Positive revisions were primarily a result of higher-than-expected demand in the Other Asia region, while downward revisions were a result of lower-than-expected performance from OECD America. In 2017, world oil demand is anticipated to rise by 1.15 mb/d, unchanged from the September MOMR, to average 95.56 mb/d," noted the report.
It pointed out that non-OPEC oil supply in 2016 is now expected to contract by 0.68 mb/d, following a downward revision of around 70 tb/d from the September MOMR to average 56.30 mb/d.
"This is mainly due to base line revisions. In 2017, non-OPEC supply was revised up slightly by 40 tb/d to show growth of 0.24 mb/d to average 56.54 mb/d, mainly due to new projects coming on stream in Russia."
In the meantime, the report stated that OPEC NGLs are expected to average 6.43 mb/d in 2017, an increase of 0.15 mb/d over the current year. OPEC crude production, according to secondary sources, increased by 0.22 mb/d in September to average 33.39 mb/d.
The OPEC Reference Basket slipped slightly in September to USD 42.89/b, down 21 cents. The ICE Brent ended up 8 cents at USD 47.24/b and NYMEX WTI increased 43 cents to USD 45.23/b. Crude oil prices were supported by efforts to address excess global supplies and consecutive draws in US crude stockpiles.