LONDON, June 14 Growth in oil supply next year
is expected to outpace an anticipated pick-up in demand that
will push global consumption above 100 million barrels per day
(bpd) for the first time, the International Energy Agency said
The Paris-based IEA said production outside the Organization
of the Petroleum Exporting Countries would grow twice as quickly
in 2018 as it will do this year, when OPEC and 11 partner
nations have restrained output.
"For total non-OPEC production, we expect production to grow
by 700,000 bpd this year, but our first outlook for 2018 makes
sobering reading for those producers looking to restrain
supply," the IEA said.
"In 2018, we expect non-OPEC production to grow by 1.5
million bpd which is slightly more than the expected increase in
Oil inventories across the world's most industrial nations
rose in April by 18.6 million barrels to 3.045 billion barrels,
thanks to higher refinery output and imports. The IEA said
stocks were 292 million barrels above the five-year average.
The agency continued to forecast an implied shortfall in
supply relative to demand for the second quarter of this year.
But it said slowing demand growth in China and Europe in
particular, as well as increasing supply, meant the deficit
should narrow to 500,000 bpd from a prior estimate of 700,000.
OPEC and 11 rival exporters including Russia have agreed to
extend an existing deal to limit supply by 1.8 million bpd to
March 2018, in order to cut global inventory levels.
"Indeed, based on our current outlook for 2017 and 2018,
incorporating the scenario that OPEC countries continue to
comply with their output agreement, stocks might not fall to the
desired level until close to the expiry of the agreement in
March 2018," the IEA said.
(Reporting by Amanda Cooper; Editing by Dale Hudson)