International Energy Agency (IEA) said on Wednesday that the global oil supply surplus situation will continue until the end of 2017. At present, the Organization of the Petroleum Exporting Countries (OPEC: OPEC) to limit oil production efforts in the United States.
The IEA said in its much-paid monthly oil market report that crude oil inventories in industrialized countries increased by 1,860 million barrels in April. IEA said crude oil inventories in these countries were 292 million barrels higher than the average for the past five years. The IEA is the body that advises governments on energy trends. The level of crude oil inventories is an indicator of excess oil supply in the oil market. Sodium Molybdate
The above high level of inventory shows that global oil supply is larger than consumption, which drags crude oil prices lower than the level of OPEC oil production. OPEC, which consists of 14 countries, controls about 40% of the world’s crude oil production.
OPEC had previously cooperated with another 10 non-OPEC oil-producing countries and hoped that by March 2018, measures would be taken to limit its production to about 180 million barrels in October 2016.
However, the IEA said that the reduction schedule to spend more time than expected, to some extent because the US oil producers this year, the rapid resumption of production. IEA said the US crude oil supply is expected to grow 43 million barrels / day this year, 2018 will grow 78 million barrels / day.
IEA said that this is the vitality of this extraordinary, diversified industry, the US supply growth may be more rapid.Chitosan oligosaccharide
If the current trend is maintained, oil inventories will begin to decline this year, but will not fall to a five-year average until the March 2018 cut-off agreement expires, and the five-year average is an important goal for OPEC.
IEA said that they often say, want to see the oil market to achieve a balance of people to be patient.
IEA said that although oil prices at a relatively low level, but the oil production is still at a low level.
It is expected that oil production this year outside OPEC will increase by 70 million barrels and 2018 barrels in 2018, slightly higher than expected global demand growth. Only last month, due to OPEC and non-OPEC countries have increased production, the global oil supply increased by 58.5 million barrels / day. http://www.lubonchem.com/