The world’s oil supply decreased by 230,000 barrels a day from February to March.
That’s according to a new report from the Organisation of the Petroleum Exporting Countries (OPEC), which also shows March 2017’s output of 95.8 million barrels per day (mb/d) was still 220,000 barrels per day higher than the same period last year.
Demand for OPEC crude in 2017 was revised down by 0.1 mb/d from the previous month.
This downward adjustment came mainly from an upward revision in non-OPEC supply, as global oil demand remained unchanged.
Non-OPEC oil supply is projected to grow by 0.58 mb/d this year, led by higher growth in the US and a lower decline in Colombia and China, to average 57.89 mb/d.
The report says supply will continue to grow, as there are many projects planned to go into operation in the coming years.
It says the period from 2017 to 2019 is likely to see the largest production increase from “mega projects” in the industry’s history.
These large projects in Brazil, Russia, Canada and the Gulf of Mexico, combined with new shale output, mean these projects could add another one mb/d in the 2020s.