OPEC and non-OPEC producers deepened their cuts to 2.4 million barrels per day (mb/d) and supported the easing of global oil supply by 120 thousand barrel per day (b/d) in March, to 97.8 million barrels per day (mb/d), the International Energy Agency (IEA) report said on Friday.
According to March's Oil Market Report, global oil demand growth for 2018 is unchanged from last month’s report at 1.5 (mb/d).
'Output was nevertheless 1.4 mb/d higher than a year ago mainly due to higher U.S. production. Non-OPEC supply is set to grow by 1.8 mb/d in 2018,' the report indicates.
In addition, OPEC crude production fell by 200 thousand b/d in March, to 31.83 mb/d, on further declines in Venezuela and lower output in Africa.
Compliance with the output deal reached 163 percent compared to 147 percent in February.
'The call on OPEC crude and stocks will hover around 32.5 mb/d for the rest of this year,' the report shows.
The agency states that political uncertainty in the Middle East has returned to the fore in recent days. Currently, uncertainty over the next steps that could be taken in Syria and Yemen has helped propel the price of Brent crude oil back above $70.
In addition, 'the trade dispute between the U.S. and China is introducing a downward risk to the forecast but the economic outlook remains supportive,' the IEA underlined.
The outlook reports that global growth at 3.9 percent in both 2018 and 2019, 'similar to the assumptions underpinning our demand forecast.'
The report also advised that an escalation of trade tensions would be damaging for growth and jobs.
By Gulsen Cagatay
Anadolu Agency
energy@aa.com.tr