Sept oil falls by 625,000 bbl/day on OPEC production slump: IEA

11 October 2013 11:37  [Source: ICIS news]

LONDON (ICIS)--Global oil supplies fell by 625,000 bbl/day in September to 91.12m bbl/day on the back of lower OPEC output, the International Energy Agency (IEA) said on Friday.

OPEC crude supplies fell below 30m bbl/day during the month for the first time in almost two years, driven by steep drops in production in Libya and Iraq, the IEA said. Supplies in the region fell by 645,000 bbl/day to 29.99m bbl/day despite Saudi output of around 10m bbl/day for the third consecutive month.

Non-OPEC supply growth is predicted to average 1.1m bbl/day in 2013 to 54.7m bbl/day, forecast to reach “near-record” levels of 1.7m bbl/day in 2014

High US refinery crude runs during September helped to offset steep contractions of 700,000 bbl/day from European refineries to raise the global throughput estimate for the third quarter of 2013 to 77.3m bbl/day, a year-on-year increase of 1.2m bbl/day. Non-OECD Asia was also a strong contributor, IEA added.

Average strength of demand for 2013 has increased to 91m bbl/day, according to the agency. However, fourth-quarter demand growth is set to be softer at around 900,000 bbl/day.

The agency noted that Brent and WTI futures eased in September and early October as a  result of the Syrian government’s agreement to dispose of its chemical weapons, and direct talks between the US and Iran at the recent UN General Assembly.

“Signs of improvement in the European economy support the upward revision to the demand forecast, while reports of higher-than-anticipated power sector usage in other regions also contributed,” the IEA said in its monthly oil market report.

“European demand data have surprised on the upside recently amid reports that the euro zone’s recession ended in 2Q13 [second-quarter 2013] and signs of improvement in business confidence,” it added.

By: Tom Brown
+44 208 652 3214

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