Global oil production bolstered by Iraqi flows
Global oil production rose by 600,000 barrels per day (b/d) in February, to 92.89 million b/d, as Opec output soared
Opec crude production in February topped 30 million b/d for the first time in five months, led by a surge in Iraqi output, which reached 35-year highs of 3.62m b/d. The International Energy Agency (IEA) said a dip in Libyan output was more than offset by the unexpected jump in Iraqi production volumes. One of the major bottlenecks at Iraq’s southern export terminals was removed, allowing shipments to rise more than 500,000 b/d, the IEA said. Increased output from Saudi Arabia and Nigeria also contributed to supply.
The call on Opec crude and stock change was lowered by 100,000 b/d to 28.9m b/d for the first quarter of 2014, but was raised by 250,000 b/d to 30.2m b/d for the second half of 2014.
Non-Opec oil production also rose in February, by 100,000 b/d, to 55.9m b/d. This was driven by marginally higher output in Canada and the US.
US oil production increased by around 65,000 b/d month-on-month, in February, while Canada reported an increase of 75,000 b/d. Non-Opec output growth outside of North America was scarce, the IEA said, and a meaningful rise occurred only in Colombia.
Total non-Opec supplies increased by 1.3m b/d in 2013 and are expected to rise by a further 1.7m b/d in 2014, the highest growth rate since the early 1990s. Non-Opec supply growth will be driven by “relentless growth” in US and Canadian supplies, as well as gains in Russia, China and Brazil, the IEA said.
OECD oil inventories dropped counter-seasonally by 13.2m barrels in January to 2.5 billion barrels, as unusually cold weather in North America drew stocks of heating fuels.