Global oil supply falls in February

Global oil supply decreased in February by 0.16 million barrels per day (mb/d) month-on-month to average 99.15 mb/d, the Organization of Petroleum Exporting Countries (OPEC) showed on Thursday.

OPEC’s monthly oil market report said that OPEC crude oil production decreased by 221 thousand b/d to average 30.55 mb/d, according to secondary sources. Non-OPEC supply, including OPEC natural gas liquids (NGLs), increased by 0.06 mb/d month-on-month to average 68.60 mb/d.

According to OPEC’s report, the share of OPEC crude oil in total global production declined by 0.2 percentage points to 30.8 percent in February 2019 compared with the previous month. Furthermore, the report affirmed that in 2019, demand for OPEC crude is forecast at 30.5 mb/d, around 1.1 mb/d lower than the estimated 2018 level.

“Global oil demand is expected to increase by 1.24 mb/d this year, down from growth of 1.43 mb/d last year. The U.S. is expected to lead OECD [Organization for Economic Co-operation and Development] growth, while in the non-OECD, a slowdown in China is likely to be offset by a recovery in demand growth in the Middle East,” OPEC’s report showed.

According to the report, while oil demand is expected to grow at a moderate pace in 2019, it is still well below the strong growth expected in the non-OPEC supply forecast for this year. “This highlights the continued shared responsibility of all participating producing countries to avoid a relapse of the imbalance and continue to support oil market stability in 2019,” OPEC stated.