Oil production has to be increased in Organisation of Petroleum Exporting Countries (OPEC) in the second half of the year in order to meet global demand, according to the IEA.
Its latest Oil Market Report suggests world oil demand growth will be slightly higher than previously estimated this year – at 1.32 million barrels per day (b/d) – which would be driven by strong demand from India, China and Saudi Arabia.
OPEC, which controls around 40% of global supplies, will need to provide an average of 30.7 million barrels a day in the second half.
“In order to balance forecast demand, OPEC would need to hike third quarter production by another 900,000 b/d from April levels”, the IEA said.
Its report confirmed that following a five-month low in March, OPEC crude oil production rebounded by 405,000 b/d in April – contributing to the 700,000 b/d month-on-month increase.
However, turmoil in producers such as South Sudan and problems at Kazakhstan’s Kashagan field and elsewhere led to a reduction in projection for non-OPEC supply growth by 100,000 b/d to 1.5 million b/d for the year.