Global oil production rose by 1.45% month-on-month to 97.67 million barrels per day (mb/d) in October due to higher US production, according to the International Energy Agency's (IEA) oil market report on Tuesday.
'The US had already roared back from Hurricane Ida in October, accounting for half of an overall 1.4 mb/d month-on-month (m-o-m) increase that pushed world oil production to 97.7 mb/d for the month,' the IEA said.
Daily crude oil production of the Organization of Petroleum Exporting Countries (OPEC) rose to 27.42 mb/d in October with an increase of approximately 240,000 b/d compared to the previous month.
During this period, non-conventional OPEC production, other than crude oil, was recorded as 5.31 mb/d, raising OPEC's total oil production to 32.73 mb/d last month.
Daily oil production of non-OPEC countries increased by approximately 1.17 mb/d compared to the previous month to reach 64.94 mb/d.
According to the report, the global oil supply is estimated to increase by 6.4 mb/d to 99.22 mb/d by the end of this year, relative to 2020.
Global oil supply is expected to increase by 1.5 mb/d in the October-December period, with the IEA estimating that 400,000 b/d of this increase will come from the US alone.
Saudi Arabia and Russia are expected to be responsible for an increase of 330,000 b/d in line with OPEC+ targets.
- Oil demand remains unchanged
The IEA kept its global oil demand forecast constant compared to the previous report.
'Global oil demand is on track to strengthen further over the remainder of the year as more countries open their borders to international travel, mobility levels increase and vaccination campaigns move apace,' the agency said.
Despite the recovery in global oil demand, the IEA kept its forecast for an increase in global oil demand for this year and next year unchanged, due to outbreaks of new coronavirus (Covid-19) variants in Europe, weak industrial activities and high oil prices.
As a result, global oil demand is expected to be approximately 96.28 million barrels this year, marking an increase of 5.49 mb/d compared to last year.
Demand is expected to reach 99.65 mb/d with an increase of 3.37 mb/d in 2022, returning to the levels recorded before the coronavirus (Covid-19) pandemic.
By Zeynep Beyza Kilic