The IEA expects that the production cutbacks of the OPEC countries will not be sufficient to keep supply at a low level in relation to demand. The demand forecasts left the institute with 1.4 million barrels per day. The forecast for the Opec supply raised from 1.6 million to 1.8 million barrels. The demand for OPEC oil should also be lower than previously estimated.
The OPEC Monthly Report showed that the conglomerate cut more in January than had been expected. Production fell by 800 thousand barrels to 30.81 million barrels per day. Saudi Arabia cut the most. Demand for OPEC oil is expected to decline by 240 thousand barrels a day compared to last month. For global demand, the forecast was revised down slightly by 50 thousand barrels per day to 1.24 million barrels per day. Producers outside of OPEC should increase their supply by 80,000 barrels per day, as it was called.
US oil reserves could decrease
Last week 998 thousand barrels were mined with expectations of 2.4 million barrels. The Cushing camp also recorded a reduction of 502 thousand barrels. If the EIA report also confirms this development it could support the WTI oil price.
Good luck to all