LONDON Nov 12 OPEC's production remains higher
than next year's global requirement for its crude, the exporter
group said on Tuesday, even after Saudi Arabia cut production
from a record high level.
The monthly report from the Organization of the Petroleum
Exporting Countries adds to signs that increasing supply from
the United States, enjoying a shale energy boom, and other
non-OPEC countries will weigh on OPEC's market share in 2014.
OPEC forecast demand for its oil in 2014 will average 29.57
million barrels per day (bpd), unchanged from its previous
estimate. The group pumped 29.89 million bpd in October,
according to secondary sources cited by the report.
That suggests inventories will build up further in 2014 if
the group keeps output at October's rate, although the amount of
excess supply has fallen from earlier this year when OPEC output
was well above 30 million bpd.
Oil stocks in developed countries that are members of the
Organisation for Economic Co-operation and Development (OECD)
and emerging nations already show that consumers have enough
oil, OPEC said.
"The current healthy number of days of forward cover in the
OECD combined with data showing an ongoing expansion in non-OECD
stocks highlight the fact that the market is well supplied,"
OPEC said in the report.
This is the last report before OPEC meets on Dec. 4 to
decide whether to change its nominal production target of 30
million bpd. With oil prices above OPEC's desired level of $100
a barrel, big changes in policy are not expected.
While output rose in Libya and Iraq in October, top exporter
Saudi Arabia told OPEC it cut back production to 9.75 million
bpd from a record rate above 10 million bpd. Industry sources
said the reduction mainly reflected lower domestic demand.
Two other government reports on global oil supply and demand
are due this week. The U.S. Energy Information Administration
issues its report on Wednesday and International Energy Agency,
adviser to industrialized countries, on Thursday.
(Editing by William Hardy)