This weak demand, the agency says, would be worsened by oversupply in the world market from both OPEC and non-OPEC countries- a situation that can see a country such as Nigeria, not finding any buyer for its crude oil in the global market.
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OPEC announced in September that Indonesia had requested to rejoin OPEC after a seven-year leave, having become a net oil importer in 2009, although a few analysts were unmoved over the development.
Taking into consideration for Indonesia’s recent membership, OPEC is said to be mulling an increase to its production target by 1 million bpd.
OPEC production, which has surged since the policy shift of November 2014 led by record Saudi Arabian and Iraqi output, fell in October on export delays in Iraq and lower supply from Saudi Arabia and Kuwait, said the report, citing secondary sources.
Oil prices have lost about 40 percent in the past year as several OPEC members pump near record levels to defend their market share against rivals such as the US shale industry. 2 mb/d higher than in the current year and unchanged from the previous report. In 2016, demand for OPEC crude is forecast at 30.8 mb/d.
“The massive stockpile overhang is one more indicator, along with the ongoing slump in prices, that Saudi Arabia’s oil strategy isn’t working so far”, said Seth Kleinman, head of energy strategy at Citigroup Inc.in London. With supplies of Winter fuels also plentiful, “Oil-market Bears may choose not to hibernate”.
Benchmark U.S. crude futures were at $41.52 a barrel at 0417 GMT, down 23 cents from Thursday, when prices tumbled 4 per cent on the back of rising United States stocks. In last month’s STEO, non-OPEC production was forecast to increase 100,000 BPD in 2016, Kallanish Energy reports. The biggest drop was in Iraq, where output fell by 195,400 barrels a day to 4.01 million. The kingdom’s output often declines after summer as domestic fuel demand for power generation eases.
Total Crude Oil inventories in developed nations increased by 13.8-M bbl to about 3-M in September, a month when they typically decline, according to the agency.
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The IEA said global oil supplies breached 97 million barrels per day in October, up 2.0 million from a year earlier, as non-OPEC output recovered from lower levels in the previous month. Projects equivalent to 5 million barrels of daily output have been delayed or canceled, OPEC said.
