World oil production fell by more than 0.11%, or around 120,000 barrels per day (bpd), to nearly 102.13 million bpd in November, although US and Brazilian production was robust, according to the International Energy Agency’s (IEA) latest report on Thursday.
According to the energy agency’s Oil Market Report for November, crude oil production by the Organization of Petroleum Exporting Countries (OPEC) decreased by approximately 100,000 bpd in November to 28.10 million bpd. The group’s total oil production reached approximately 33.69 million bpd over the same period.
Daily oil production in non-OPEC countries fell by 30,000 bpd in November to an estimated 68.45 million bpd. The three countries that raised production the most were Iran, the US, and Canada. Canada provided 110,000 bpd, while the US and Iran each contributed 90,000 bpd.
“Higher-than-forecast US supplies, along with a stronger performance from Brazil and surging Iranian production combined with slower demand, have prevented a tighter oil market from materializing in the fourth quarter of this year as previously expected,” the report said.
Growth in global oil demand is predicted to decrease in 2024.
The growth in global oil demand next year is predicted to decrease to 102.78 million bpd, with China’s demand showing a plummet.
“Besides structural headwinds such as tighter efficiency standards and an expanding electric vehicle fleet, world GDP growth is set to decline further, from an already below-trend level of 3% in 2023 to 2.6% in 2024, with China posting a sharp fall from 5% to 4.2%,” the IEA said.
The agency predicts that this year’s global oil demand will be 101.7 million barrels per day, up almost 2.3 million barrels from the previous year. Nonetheless, this amount was about 90,000 bpd less than the forecast demand from last month, of which over 80% is anticipated to originate from China.
By Sibel Morrow and Handan Kazanci
