In the recent Organization of the Petroleum Exporting Countries report the OPEC oil production inclined during July compared to June 2011:
OPEC’s crude oil production rose by 404 thousand bbl/d during July as it reached 30,069 thousand bbl/d compared to 29,664 thousand bbl/d in June. Libya’s oil production is still very low and is next to nothing at 53 thousand bbl/d compared with an average of nearly 1.6 million bbl/d back in 2010. The main reason for the increase came from the increased oil production by Saudi Arabia by 255 thousand bbl/d as it reached in July nearly 9.75 million bbl/d – its highest oil production quota in 2011. Angola also raised its oil production quota by 240 thousand bbl/d during July compared to June’s. The rest of OPEC countries nearly didn’t change their oil quota during July.
The global oil supply averaged in July at 88.33 million bbl/d, which is roughly 0.8 million bbl/d increase compared with June’s average oil supply.
The oil supply of non-OPEC countries is estimated to reach 52.83 million bbl/d in 2011, an increase of 0.58 million bbl/d compared with 2010. This revised estimate is slightly lower than last month’s report due to lower production in certain countries. The countries that are had an upward revision were US, Mexico and Denmark, while the countries with downward adjustment were UK, Canada, Norway and Australia. North America is expected to have the highest growth in oil production among non-OPEC countries.
The worldwide crude oil demand is estimate to grow in 2011 by 1.2 mbbl/d to an average of 88.14 million bbl/d compared with 2010’s average. This estimate is lower than the previous projection. The rise in demand is driven mainly from the non-OECD countries with China leading the front with an estimated growth of 0.58 mbbl/d compared with 2010; followed by other non-OECD countries’, as their demand is estimated to increase by 0.65 mbbl/d in 2011 to 27.58 mbbl/d.
OECD countries’ total oil demand is estimated to decline by 0.19% or 0.09 mbbl/d in 2011 to 46.12 mbbl/d, compared with 2010 to 46.20 mbbl/d. This revised projection is lower than last month’s report because of the economic worries that caused a decline in the summer driving season.
These findings suggest that the global oil market seems to loosen up with increases in oil supply on the one hand, and decreases in growth rate of crude oil demand on the other.
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