A further increase in oil demand is not expected in 2015 but the current excess supply in the market will start easing in the coming period, the Organization of the Petroleum Exporting Countries (OPEC) said on Wednesday in its monthly oil market report for May.
Demand for crude will remain unchanged at 1.18 million barrels a day in 2015, OPEC, which produces about a third of the world’s total oil, said. Excess global oil supply, estimated to be about 2 million barrels a day, was “likely to ease over the coming quarters, OPEC stated, forecasting US production to decline in this year’s third quarter.
The increase in non-OPEC crude oil output would remain unchanged at 680,000 barrels a day in 2015, the organization forecast in its report, with demand for the crude it produces on its own rising 300,000 barrels per day from 2014 to 29.3 million barrels per day this year.
Total crude production rose by 24,000 barrels a day in May to 30.98 million barrels from April, mostly due to higher output from Iraq and Angola, OPEC said. Iraq produced 3.8 million barrels a day in May, up from 3.7 million barrels in April, with Saudi Arabia, the world’s largest crude exporter, pumping 10.333 million barrels a day last month, up from 10.308 million barrels a day in April.