By Srinivas Chowdary Sunkara // petrobazaar // 17th May, 2018.
IEA Monthly Oil Report for the month of April, 2018 - Highlights.
Oil Demand growth - Prospectus
This report revised global oil demand growth for 2018 slightly downwards by 40 kb/d to 1.4 mb/d. While confirming the strong growth in 1Q18 and the start of 2Q18, slow down is expected in 2H18 due to higher oil prices, mentioning that the world oil demand is expected to average at 99.2 mb/d in 2018. The agency has a confidence of underlying strong demand around the world with reference to IMF note on global economy's strong performance, which was shown as driving factor for rising oil prices.
On the supply side, IEA primarily mentioned the decision of U.S administration to withdraw from the Joint Comprehensive Plan of Action regulating Iran's nuclear activities. IEA tried to explain the affect of the decision and role of U.S in today's uncertain geopolitical climate. This report showed a modest increase in U.S output growth in 2018 apart from confirmation of steady global oil supplies in April to close to 98 mb/d. Agency said that the Robust non-OPEC supplies led by U.S could compensate the lower OPEC production as per the data.
Production - Stocks - Prices
OPEC production eased by 130 kb/d in April, to 31.65 mb/d on further declines in Venezuela and lower output in Africa after a record compliance rate of 172%. OECD commercial stocks declined counter-seasonally by 26.8 mb in March. ICE Brent and NYMEX WTI futures prices rose to multi-year highs in recent days on solid oil demand, reduced OPEC output and geopolitical developments as per the report.