Published on July 17, 2017

OPEC said its oil production jumped in June and as per analysis world demand for its crude will decline next year as rivals pump more, pointing to a market surplus in 2018 despite an OPEC-led output cut.

As per report, the world will need 32.20 million barrels per day of crude from its members next year. The report also said Saudi Arabia, which earlier this year voluntarily cut production to below its OPEC goal, boosted output to 10.07 million bpd in June, slightly above target.
Supply is rising outside the group as well. OPEC estimated supply from all non-OPEC producers next year will rise by 1.14 million bpd, a sizeable increase from growth of 800,000 bpd this year led by the United States.

OPEC said its oil output in June rose above the demand forecast, led by gains in Libya and Nigeria, two members exempt from the cut aimed at eliminating excess supply.

As per OPEC report, the market could remain in surplus next year while demand will be lower in compare to supply surplus.