OPEC's oil production decreased in January

According to OPEC's monthly oil market report, crude oil production in January saw the largest declines in Libya, Kuwait, Iraq, and Algeria. The United Arab Emirates led the countries where production increased, followed by the group's largest producer, Saudi Arabia.

Daily oil production decreased by 162 thousand barrels in Libya, 109 thousand barrels in Kuwait, 98 thousand barrels in Iraq, and 46 thousand barrels in Algeria. During the same period, the United Arab Emirates' daily production increased by 31 thousand barrels, and Saudi Arabia's production rose by 25 thousand barrels. The share of OPEC crude oil in total global production decreased by 0.2 percent last month compared to the previous month, reaching 25.9 percent.

Demand for OPEC crude oil is expected to increase by 1 million barrels per day this year compared to last year, reaching 28.4 million barrels. This level is projected to rise to 28.8 million barrels per day next year. The number of drilling rigs worldwide increased by 63 last month to 1,864. The number of drilling rigs increased by 12 in OPEC countries and by 51 in non-OPEC countries.

GLOBAL OIL DEMAND

Global oil demand is estimated to increase by 2 million 240 thousand barrels this year compared to last year, rising to 104 million 400 thousand barrels. The growth in oil demand is expected to stem from increases in air and road transportation, as well as industrial, construction, and agricultural activities. Furthermore, capacity increases and petrochemical margins in non-OECD countries, particularly in China and the Middle East, are expected to impact demand. Global demand is projected to rise by 1 million 850 thousand barrels per day in 2025 to 106 million 250 thousand barrels, with an increase of 100 thousand barrels per day in OECD countries and 1 million 740 thousand barrels in non-OECD countries.

News Source: AA