Global Oil Production Declined

The International Energy Agency (IEA) announced that global oil production declined by 1.38 million barrels per day in January compared to the previous month, falling to 101.45 million barrels per day. According to the IEA's oil market report for January, global oil supply fell to its lowest level since December 2022 due to production cuts by the OPEC+ group and adverse weather conditions affecting northern regions of the Americas, which disrupted production at oil fields in the region. The disruption to production in the region is estimated at approximately 900,000 barrels per day. Crude oil production by the Organization of the Petroleum Exporting Countries (OPEC) declined by approximately 300,000 barrels per day in January to 26.73 million barrels per day. During this period, other non-conventional OPEC production excluding crude oil was recorded at 5.48 million barrels per day. Thus, OPEC's total oil production reached approximately 32.21 million barrels per day last month. Global oil production in January fell by 1.38 million barrels per day to 101.45 million barrels per day.

US to account for roughly half of this year's production increase

The report estimates that global oil supply will increase by approximately 1.7 million barrels per day this year compared to last year, reaching approximately 103.8 million barrels per day. The US, Brazil, Guyana and Canada are expected to contribute approximately 1.3 million barrels per day to global supply this year. More than half of this is expected to come from the US. With this production level, the US is positioned as the highest producing country for the fourth consecutive year. While the contribution of non-OPEC+ countries to global supply is estimated to reach approximately 1.6 million barrels per day this year, OPEC+ group production is expected to increase by approximately 90,000 barrels per day during the same period.

China, Brazil and India stand out

The report projects that the increase in global oil demand this year will remain unchanged from last month at 1.2 million barrels per day. Accordingly, global oil demand, which was 103.72 million barrels per day last year, will reach 102.98 million barrels per day this year. The anticipated increase in oil demand this year is expected to be concentrated in China, Brazil and India, with demand growth in these countries accounting for approximately 80 percent of this year's total demand increase. Source