After taking a careful note of oil market developments since it last met in Vienna on 25 May 2017, the Organisation of the Petroleum Exporting Countries (OPEC) has reviewed its oil demand growth for the remainder of 2017 and 2018.
OPEC, at its 173rd Meeting in Vienna, observed that global economic growth forecasts had improved since May, with expectations for both 2017 and 2018 now at 3.7percent. In addition, global oil demand has been robust with upward revisions since May, with oil demand growth now standing above 1.5 million barrels a day (mb/d) for both 2017 and 2018.
It was also evident that the market rebalancing has gathered pace since May, with the OECD stock overhang falling to around 140 million barrels (mb) above the five-year average for October, a drop of almost 140 mb since May. Moreover, crude in floating storage has also fallen significantly over this period, the Conference observed, but reiterated that it was vital that stock levels be drawn down to normal levels, despite this success.
In line with the decisions taken at its 171st and 172nd Meetings, the Conference decided to amend its production adjustments to take effect for the whole year of 2018 from January to December 2018, while assuring full and timely conformity.
In view of the uncertainties associated mainly with supply and, to some extent, demand growth. It is intended that in June 2018, the opportunity for further adjustment actions will be considered based on prevailing market conditions and the progress achieved towards rebalancing of the oil market at that time.
In agreeing to this decision, Member Countries confirmed their continued focus on a stable and balanced oil market, in the interests of both producers and consumers.