Global oil output rises by 0.71 mln. barrels per day in Jan.

By Ebru Sengul Cevrioglu

ANKARA (AA) - Global oil supply in January increased by 0.71 million barrels per day (bpd) compared to the previous month to average 98.69 million bpd, the Organization of the Petroleum Exporting Countries (OPEC) said on Thursday.

The organization's monthly oil market report shows that OPEC crude oil production averaged 27.98 million bpd in January, higher by 0.06 million bpd month on month (m-o-m). Crude oil output increased mainly in Nigeria, Saudi Arabia and the United Arab Emirates (UAE), while production in Venezuela, Libya and Iraq declined.

Production increased by 81,000 bpd to nearly 1.4 million bpd in Nigeria, by 54,000 bpd to 9.99 million bpd in Saudi Arabia and by 44,000 bpd to 2.92 million bpd in the UAE.

Meanwhile, oil output in Venezuela decreased by 51,000 bpd to 668,000 bpd, and fell by 45,000 bpd to around 1.01 million bpd in Libya and 27,000 bpd to 4.25 million bpd in Iraq.

The share of OPEC crude out of total global production decreased by 0.1% to 28.4% in January compared with the previous month.

Non-OPEC liquids production, including OPEC natural gas liquids, grew by 0.65 million bpd in January compared to the previous month to average 70.71 million bpd, higher by 2.3 million bpd year on year.

"Preliminary increases in production of 0.53 million bpd during January were driven by the non-OECD, mainly by Russia, Ecuador and Brazil, while output in the OECD was up by 0.08 million bpd, primarily driven by Norway and the UK," the report said.

- Oil demand forecasts remain unchanged

The OPEC kept its global oil demand forecast for 2022 unchanged compared to its assessment in the previous month. Total world oil demand is anticipated to reach nearly 100.8 million bpd in 2022, with a growth of 4.15 million bpd.

"In most European countries, lockdowns and other restrictions are easing. Similarly, in the US, the COVID-19 pandemic has been well contained through vaccinations and other containment measures. As most world economies are expected to grow stronger, the near-term prospects for world oil demand are certainly on the bright side," the agency said.

In 2021, world oil demand substantially outpaced the historically low levels of 2020 with an increase of 5.7 million bpd, yet it remained below pre-pandemic levels.

According to the report, world oil demand during the third and fourth quarter of last year proved to be substantially more resilient than previously anticipated and was strongly supported by increasing mobility and various government stimulus programs across the world.

In the OECD, the US continued to be the primary driver of oil demand by recording strong growth of 1.6 million bpd last year on year, while in the non-OECD, China and India were the main drivers.