FT: Opec “will need to increase production significantly in the second half of the year in order to meet world demand, according to the west’s energy watchdog.”
“While production gains of about 400,000 barrels a day in April have gone some way towards easing tight global markets, the International Energy Agency says a bigger increase will be needed in the second half of the year when consumption picks up after the northern hemisphere summer.
“In order to balance forecast demand, Opec countries would need to hike third quarter production by another 900,000 b/d from April levels,” the agency said in its latest monthly report.
But the Paris-based organisation said it was not clear if Opec, which controls about a third of world oil production, would be able ….A series of problems have hampered crude supply from Opec members.
….As a result of these problems, the IEA has cut its estimate for non-Opec supply growth by 100,000 b/d to 1.5m b/d.
Brent, the international oil maker, has traded in a narrow range this year, averaging $108 a barrel as the diplomatic crisis over Ukraine and continued disruptions to Opec and non-Opec supplies have offset slowing growth in emerging markets such as China.
The IEA said a surge in China imports in April, which was not matched by a commensurate rise in demand, suggested the world’s second-biggest oil consumer was adding to its strategic reserves. It said the stockpiling could provide a further prop to prices and tighten global oil stocks.
….Analysts expect China to add more than 40m barrels to its strategic oil reserves in the first half of 2014.”
Future Today
