According to Oil and Gas Pipeline News, OPEC’s oil production declined in April, and the organization expects demand to increase in 2019, suggesting a contraction in supply.
In its monthly oil report, OPEC said its daily production fell 3,000 barrels to 30.31 million barrels annually in April. Despite a slight drop in output, Saudi Arabia’s daily output has also fallen by 45,000 barrels.
Meanwhile, global oil demand is expected to increase by 1.21 million barrels a day this year to an average of 99.94 million barrels a day, and OPEC oil demand will increase by 300,000 barrels a day to 30.6 million barrels a day in 2019.
OPEC also expects US oil production to decline. This is due to constraints that limit the ability to transport Permian oil to the Gulf of Mexico coast of the United States, as well as the impact of lower drilling and completion activities in major shale blocks.
The daily output of shale oil in the United States is expected to increase by 1.32 million barrels in 2019 compared with the same period last year, reaching an average of 7.88 million barrels, a decrease of 280,000 barrels compared with the forecast in 2018.
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