According to a recent monthly report of the International Energy Agency (IEA), the fall in the crude oil supply at the global market has reduced inventories in some areas.
Global supply of crude oil declined 120 kbpd in March 2013 because of a fall in OPEC output on the back of disruptions in Nigeria, Libya and Iraq and against a backdrop of seasonally weaker second-quarter refiner demand. OPEC’s crude oil output was down 140 kbpd to 30.44 mn bpd.
The report shows that even the non-OPEC supply has likely come off its high levels of Dec 2012 quarter in the March 2013 quarter by around 240 kpbd to 54 mn bpd.
For the year as a whole, the non-OPEC supply is expected to average at 54.4 mn bpd or a rise of 1.1 mbpd from 2012.
The OECD industry oil stocks contracted 32.9 million barrels to stand at 2,664 million barrels by end-February because of reduced oil supply.
Product stocks led the draw, falling by 29 million barrels on reduced refining output, and by end-February covered 31.1 days of demand, 0.2 day less than a month earlier, mentioned the report.
In the report, the IEA maintained its forecast of global demand growth for 2013 at 795 kbpd, to 90.6 mbpd. It expects OECD demand to fall an aggregate 480 kbpd, led by a 340 kbpd decline in Europe, while non-OECD demand to grow by 1.28 mn bpd in 2013.
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