OPEC raises 2018 forecast for oil supply growth

OPEC raises 2018 forecast for oil supply growth

Mubasher: The Organization of Petroleum Exporting Countries (OPEC) on Monday raised its expectations for oil supply growth from non-OPEC members in 2018 on the back of the rising US output.

Over the course of this year, non-OPEC production is expected to grow by around 1.40 million barrels per day (bpd) to 59.26 million bpd, OPEC's monthly report showed.

The report ascribed the hike in oil stockpiles to an increase from non-OPEC members, highlighting that the US output is forecast to climb by around 1.30 million bpd in 2018.

Other non-OPEC members likely to bolster production this year are: Canada, the UK, and Brazil, according to the report.

On the other hand, OPEC members expect oil demand to rise by 1.59 million bpd this year, up 60,000 bpd from last month's forecast.

The monthly report also indicated that OPEC's production fell by 8,100 bpd in the first month of 2018.

By 2:38 pm GMT, Brent crude futures rose by around 1.42% to $63.68 pb, while Nymex futures climbed by 1.67% to $60.19 pb.