There was a drop in global oil supply during the month of August, according the latest Oil Market Report from the International Energy Agency (IEA).
Production fell by 770,000 barrels per day (b/d) to 91.59 million b/d, with cuts in output from both Middle Eastern group the Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC nations.
OPEC supplies were trimmed by 260,000 b/d to 30.51 million b/d as near record Saudi output failed to offset the collapse of production in Libya.
Growing supplies from the United States and Canada also failed to counteract seasonal declines in the North Sea, causing non-OPEC output to fall to 54.51 million b/d in August, a drop of 510,000 b/d. However expanding North American production is expected to win out over the third quarter of this year, with output increasing by more than half a million barrels per day.
The IEA predicts global demand will rise by at least 1 million barrels a day to 92 million b/d in 2014, as the underlying macroeconomic conditions improve. That’s significantly higher than the increase of 895,000 barrels per day (b/d) – up to 90.9 million b/d – expected for 2013. The prediction is the same as in last month’s report.