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Opec sees higher 2018 oil demand, but raises output again

Due to rising global consumption and slower supply growth from rivals

Reuters  |  London 

Opec sees higher 2018 oil demand, but raises output again

Organization of the Petroleum Exporting Countries (Opec) forecast higher demand for its in 2018 due to rising global consumption and slower supply growth from rivals, although another jump in the group's output suggested the will remain in surplus despite efforts to rein in production.

In a monthly report on Thursday, the said the world would need 32.42 million barrels per day (bpd) of its crude next year, up 220,000 bpd from the previous forecast.

The was also upbeat about 2018 economic growth and said stocks in developed economies declined in June and would fall further in the United States (US), a sign the Opec-led supply cut is working.

"With the ongoing growth momentum and an expected continued dynamic in second-half 2017, there is still some room to the upside," said in the report.

"Further declines in the US are likely, given the record rates at which US refineries are running."

But the 14-country producer group also said its output in July came in above the demand forecast, led by gains in Libya and Nigeria, two members exempt from the cuts aimed at eliminating excess supply.

In the report, said its output rose by 173,000 bpd in July to 32.87 million bpd, led by the exempt producers plus top exporter Saudi Arabia.

The figures mean has compiled 86% with its output-cutting pledge, according to a Reuters calculation, down from 96% initially reported for June but still high by standards.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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