ECONOMY


Global supply-demand crude oil balance is expected to tighten in 2017 and 2018

Baku, January 26, AZERTAC

The global supply-demand crude oil balance is expected to tighten in 2017 and 2018, the U.S.' Energy Information Administration (EIA) announced Wednesday.

The EIA estimates global crude production to have averaged 96.4 million barrels per day (mbpd) last year.

This amount is forecast to rise by 1.1 mbpd to reach 97.5 mbpd in 2017, and increase by another 1.4 mbpd to 98.9 mbpd in 2018.

Worldwide consumption, on the other hand, is anticipated to increase faster than global production.

Total consumption is expected to have averaged 95.6 mbpd last year, according to the EIA.

This level is estimated to rise by 1.6 mbpd to reach 97.2 mbpd in 2017, and increase by another 1.5 mbpd to 98.7 mbpd in 2018.

Since global consumption is anticipated to rise at a faster rate than production during this year and the next, this will “lead to stock draws in both periods,” the EIA said.

Crude oil stocks, which rose 0.9 mbpd on average in 2016, is expected to rise at a slower pace -- by 0.3 mbpd in 2017, and by 0.1 mbpd in 2018, according to the EIA.

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