The International Energy Agency (IEA) has released its latest monthly market report. The organisation has predicted global demand growth for 2018 as unchanged at 1.4mn barrels per day (bpd).
In 2019 growth accelerates slightly to 1.5mn bpd, but the IEA states there are risks to the forecast from escalating trade disputes and rising prices if supply is constrained.
It also revealed global oil supply rose by 300,000 bpd in July to 99.4mn bpd, 1.1mn bpd above a year-ago. Compliance with the production cutback agreement made in late 2016 in Vienna at the headquarters of the Organisation of the Petroleum Exporting Countries (OPEC) eased to 97% in July as output scale backs were relaxed. Non-OPEC production is expected to grow by 2mn bpd in 2018 and by 1.85mn bpd next year.
Meanwhile, OPEC crude oil output was steady in July, at 32.2mn bpd. An unexpected decline in Saudi Arabian supply was offset by higher production from the UAE, Kuwait and Nigeria. OPEC compliance was unchanged in July at 121%.
