The Organisation of the Petroleum Exporting Countries (OPEC) has said world oil demand should increase rise by 1.6mn barrels per day (bpd) this year in its latest monthly report for February, an increase of 60,000 bpd from its previous forecast.
“Recently, healthy and steady economic development in major global oil demand centres was the key driver behind strong oil demand growth,” OPEC stated in the report.
“This close linkage between economic growth and oil demand is foreseen to continue, at least for the short term.”
OPEC also believes non-member producers would boost supply by 1.4 mn bpd this year, an increase of 250,000 bpd from last month and the third straight rise from the 870,000 bpd forecast in November.
“The steady oil price recovery since summer 2017 and renewed interest in growth opportunities have led to oil majors catching up in terms of exploration activity this year, both in the shale industry and offshore deep water,” OPEC said, referring to the situation in the US.
OPEC’s own production fell in January by 8,000 bpd to 32.3mn bpd, the report said.
