Energy Market Research

Sunday

OPEC
The organization released its monthly oil report last Thursday. Report shows world oil demand growth in 2016 is expected to increase by 1.32 million bpd, following an upward adjustment of 70,000 bpd to reflect continued better-than-expected consumption in OECD Europe and Asia Pacific. Total oil demand is now estimated to average 94.62 million bpd, taking into account base line adjustments to China of around 0.12 million bpd. In 2017, world oil demand growth is seen to reach 1.19 million bpd, representing an upward revision of 35,000 bpd to now average 95.81 million bpd. Non-OPEC oil supply growth in 2016 has been revised up by 50,000 bpd to now show a contraction of 0.66 million bpd on higher-than-expected output in 4Q16. In 2017, non-OPEC supply growth has been revised up by 120,000 bpd to now show an increase of 240,000 bpd, due to a rise in drilling activities and investments in the US. OPEC NGL production is forecast to grow by 0.15 million bpd in 2017, following growth of 0.15 million bpd in 2016.


FGE
Siamak Adibi, head of Middle East gas at FGE, said at CWC Iran LNG & Gas summit in Frankfurt on Tuesday that European LNG demand appeared to grow to 88 million tons in 2020, 99 million tons in 2030 from 38 million tons in 2016. Asian demand to rise to 231 million tons in 2020, 324 million tons in 2030 from 191 million tons in 2016. Demand in the Middle East, North Africa is projected to increase around 19 million tons in 2020, 35 million tons in 2030 from 18 million tons in 2016; while Americas demand seems to reach 19 million tons in 2020, 21 million tons in 2030 from 18 million tons in 2016.


BofA
Bank of America Merrill Lynch issued a report on Thursday saying that US shale-oil production may grow by average 700,000 bpd annually between 2017 and 2022, reaching 3.5 million bpd by then and delivering more than 80 percent of supply from outside of OPEC. The bank sees OPEC adding only one-third of the global oil supply growth to 2022.

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