The International Energy Agency (IEA) has released its Oil Market Report for June. This report forecast a 1.3 million bpd rise in global oil demand for this year, reaching 92.8 million bpd. Global oil demand is anticipated to increase sharply from a low of 91 million bpd in the first quarter to a high of 94 million bpd in the fourth.
Global supplies rose 530 000 bpd in May, to 92.6 million bpd. This is due mostly to an increase in OPEC production by 440 000 bpd. OPEC supplies also increased, rising 85 000 bpd to 19.99 million bpd in May. Increased Saudi output offset declines in Libya. The ‘call’ on OPEC crude and stock changes was raised by 150 000 bpd for 2014, to an average of 30.9 million bpd.
OECD industry stocks built by 39.8 million bbls, twice the seasonal average, and were at 2624 million bbls by the end of April. As a result, the deficit to average levels fell to 77 million bbls, its narrowest since October 2013. IEA suggests that preliminary data indicates a further strong 37.4 million bbl build in May.
Global refinery crude demand fell to a seasonal low of 75.9 million bpd in April on maintenance and weak margins. OECD runs were stronger than expected, rising by 470 000 bpd year on year, their first annual gain since June 2013. Global runs are set to increase seasonally through August, averaging 76.5 million bpd in the second and 77.8 million bpd in the third.
Adapted from a press release by Emma McAleavey.
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