OPEC countries cut oil output in March by more than what they pledged, according to figures the group published in a monthly report yesterday, as it sticks to an effort to clear a supply glut that has weighed on prices.
But the Organization of the Petroleum Exporting Countries also raised its forecast of oil supplies from non-member countries in 2017, as a recovery in oil prices encourages US shale drillers to pump more, reducing demand for the group’s oil this year.
Compliance in March by the 11 OPEC members with output targets under a supply cut deal averaged 104%, according to a Reuters calculation based on production figures OPEC published.
According to OPEC’s monthly report for March 2017, non-OPEC oil supply is estimated to have averaged 57.32mn barrels per day (bpd) in 2016, representing a contraction of 0.69mn bpd year-on-year following a minor downward revision of 30 tb/d.
In 2017, non-OPEC oil supply is projected to grow by 0.58mn bpd, following an upward revision of 176tn bpd due to higher than expected growth in the US and lesser contractions in Colombia and China, to average 57.89mn bpd. The US supply growth forecast was revised up by 0.20mn bpd to stand at 0.54mn bpd.
OPEC NGLs and non-conventional oil production is forecast to grow by 0.13mn bpd in 2017, following growth of 0.14mn bpd in 2016. In March, OPEC production decreased by 153tn bpd, according to secondary sources, to average 31.93mn bpd.
