World oil demand will cross 100 mbd in 2019, says OPEC

Total world oil demand is projected to surpass 100 million barrels per day (mbd) for the first time to reach 100.23 mbd next year, OPEC said in its latest monthly oil report.

"In 2019, world oil demand growth is forecast to rise by 1.41 mbd, a minor downward adjustment of 20,000 barrels per day (bpd) from the previous month’s assessment, mainly reflecting the less optimistic economic projections in the non-OECD regions of Latin America and the Middle East compared to last month," it added.

The total oil demand for 2018 is estimated at 98.82 mbd.     

According to Organization of Petroleum Exporting Countries (OPEC), the non-OPEC oil supply this year is expected to grow by 2.02 mbd, a downward revision of 64,000 bpd, with total supply estimated at 59.56 mbd.  

The US, Brazil, Canada, and the UK are expected to be the main growth drivers, while Mexico and Norway remain to be the largest declines, it noted.

Meanwhile, demand for OPEC crude is expected at 32.9 mbd in 2018, 0.5 mbd lower than in the previous year. Crude demand is forecast to fall further to 32.1 mbd in 2019.

The report, however, said that OPEC crude oil production increased by 278,000 bpd to average 32.56 mbd in August.

Saudi Arabia increased its output by nearly 38,000 bpd in August to 10.401 mbd, according to secondary sources. The direct communication figures showed the Kingdom added 124,000 bpd to 10.412 mbd in production last month.

The UAE added nearly 12,000 bpd in August to reach 2.972 mbd, the report said quoting secondary sources.

In addition, OPEC said that monetary tightening by major OECD central banks is forecast to continue and could “slow the growth trend not only in the OECD, but also in emerging and developing economies, particularly those with weak fiscal situations.”

"A number of countries have already begun to face severe financial constraints, with a considerable impact from significant declines in currency exchange rates. This, in combination with weakening domestic activities in these economies, may also have a ripple effect on the global economy," it warned.