OPEC projects that U.S. drillers will attribute the majority of the growth in oil production this year but cautioned that global economic expansion picture is overcast by uncertainty, partially due to American trade policy and sanctions.
The producer cartel raised its forecast for global oil demand in 2018 marginally, indicating strong growth in developed and emerging economies in the first quarter. The 14-member oil producer group now anticipates the world will consume 98.85 million barrels per day, 1.65 million barrels per day higher compared to the previous year.
OPEC estimates drillers outside the group will produce 59.62 million bpd this year, or 1.72 million barrels per day higher than the previous year. U.S. drillers will account for around 89 percent of that growth. According to OPEC, producers Canada, Brazil, the U.K. and Kazakhstan would also increase production.
U.S. drillers are producing a record 10.7 million bpd, according to initial weekly data from the Energy Information Administration. The U.S. is quickly approaching top producer Russia, which produces around 11 million bpd.
The cartel’s own production was up slightly in April by around 12, 000 bpd to 31.93 million bpd, according to sources that the group cites in its monthly report.
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