Non-OPEC oil supply growth to slide to 1.24 mb/d in 2015 – Report

Non-OPEC oil supply is estimated to grow by
1.68 mb/d in 2014 and rise to 1.24 mb/d in
2015.
The supply is expected to come mainly from
US, Canada, Brazil and China that constitute
the key contributors to next year's non-OPEC
supply growth.
The Organisation of Petroleum Exporting
Countries, OPEC stated in its latest report
that OPEC NGLs and non-conventional liquids
are estimated to average 6.03 mb/d in 2015,
up from 5.83 mb/d in 2014.
It stated that in October, OPEC crude oil
production averaged 30.25 mb/d, according
to secondary sources, a decrease of 0.23 mb/
d from the slightly upwardly revised
September figure of 30.48 mb/d.
The organisation stated that Light distillate
crack spreads narrowed in the Atlantic Basin
with the return of several disrupted fluid
catalytic cracking (FCC) units, mainly in the
US Gulf Coast.
"Losses at the top of the barrel resulted in a
decline in refinery margins despite a
balanced middle distillates market. In
contrast, the Asian market lost some ground
in October due to lower crack spreads," it
stated.
Meanwhile, the United States of America oil
imports from Nigeria and Algeria has dropped
by 93 per cent between 2010 and 2014 as a
result of the production of American shale oil.
The increased production of shale oil which is
equivalent of Nigeria's Bonny Light has
encouraged the United States to drastically
reduce its oil imports from the two African
nations.
The U.S Energy Information Administration,
IEA which confirmed the development
yesterday stated in a statement that the
sweet grades were mostly affected.
It stated that the U.S. has been steadily
cutting oil imports from Nigeria because of
U.S. shale oil production, which is low in
sulphur and otherwise called "light, sweet,"
similar to Nigeria's "Bonny Light" oil.
This resulted to the decline in the country's
crude oil export with crude oil export in May
this year at 1.88mbp; June, 1.71mbd and
1.61mbp in July. It stated that this comes as
Nigeria prepares for the possible effects of
dwindling crude oil prices at the international
market.
The nation is estimated to have exported
70.14 million barrels of oil including
condensate in August, or an average 2.26
million barrels per day, bpd.
Additional exports were recorded between
September and November, this year at
relatively low prices because of the lull at the
global market.
Meanwhile, OPEC stated in its latest market
report that the World economic growth
expectations for 2014 and 2015 remain
unchanged from the previous report at 3.2per
cent and 3.6per cent, respectively.
"The OECD forecast stands at 1.8per cent for
2014 and 2.1per cent for 2015, in line with
the previous report, with the US showing a
continued improvement, while the Euro-zone
and Japan are lagging in growth," it stated.
It stated that the figures for both China and
India remain unchanged from the previous
report at 7.4per cent and 7.2per cent for
China and 5.5per cent and 5.8per cent for
India in 2014 and 2015, respectively.

Posted By David Aniemeka