Organization of Petroleum Exporting Countries (OPEC) warned on Monday that the supply outside OPEC would rise into the next year and revised the group’s forecast of the supply outside and if the cartel, whose production is also rising this year, even maintains the current level of production we would be seeing a 750,000 barrels of surplus in the raw materials market.
According to fresh estimate, the supply outside OPEC would contract by 610,000 barrels per day this year and would average 56.32 million barrels per day. This is an upward revision of 180,000 barrels per day and for 2017, OPEC revised 2017 supply by 350,000 barrels on the upside. According to OPEC, “This has been mainly due to a lower-than-expected decline in US tight oil and a better-than-expected performance in Norway, as well as the early start-up of Kashagan field in Kazakhstan”. Data showed that the number of oil rigs operating in the United States rose for a tenth consecutive week.
The market is now focused on the upcoming informal meeting later in the month between OPEC members to be held in Algeria. Brent is currently trading at $47.6 per barrel and WTI at $2.2 per barrel.