According to the monthly report, forecasts for oil consumption for 2017 have changed. At the moment, OPEC estimates the average level of oil consumption at 96.32 million barrels per day. Thus, in comparison with the previous forecast, consumption expectations have increased by 10.000 barrels per day.
OPEC assumes that the increase in consumption is associated with an increase in oil purchase by China and India. Only the countries of the Asia-Pacific region that are members of the Organization for Economic Cooperation and Development (OECD) are expected to show decline in demand.
OPEC also has reported how the countries that are the members of the cartel are implementing an agreement on the reducing oil production. The figures confirm that the agreement is being implemented and even overfulfilled (in March, oil producers cut the production by 4% more than agreed). In absolute terms, this means that the decline in production had to be brought to 1.165 million barrels per day. The actual decline in production amounted to 1.206 million barrels per day.
The main burden of fulfilling the obligations regarding the decline in reduction by OPEC has been placed on the shoulders of Saudi Arabia. The Kingdom announced a decrease in production by 111,000 barrels per day. At present, Riyadh produces 9.9 million barrels per day.
The total oil production by OPEC countries in March was 31.928 million barrels per day. This is 153 thousand barrels per day less than in February.
The material was prepared with the participation of Vladimir Haritonov,
a leading analyst of the brokerage company VOSPARI.