There are indicators that oil market globally would be stable, which invariably oil producing nations, Nigeria inclusive will experience rise in their revenue in 2019, as Organisation of Petroleum Exporting Countries, OPEC has forecast high demand to rise by 1.29mb/d during this period.
According to vanguard, OPEC stated this in its monthly report yesterday, “at present oil demand is 98.79mb/d. By 2019, world oil demand will rise by 1.29mb/d, similar to last month prediction.
Consequently, the world oil demand is projected to reach 100.08mb/d. Oil demand growth is forecasted to originate from Asia, where India will take the lead, followed by China, then OECD Americans.
“OECD countries will rise by 0.25 mb/d, while non-OECD countries will push oil demand growth by adding an estimated 1.04 mb/d in 2019.
The report revealed “Non-OPEC oil supply growth in 2018 is estimated at 2.50 mb/d, an upward revision of 0.19 mb/d from the previous month’s assessment. The US, Canada, Russia and Kazakhstan are expected to be the main growth drivers, while Mexico and Norway are projected to present the largest declines.”
The report further revealed “With this, total non-OPEC supply for 2018 is now estimated at 60.03 mb/d. Non-OPEC oil supply growth in 2019 was revised down by 0.08 mb/d to stand at 2.16 mb/d and is anticipated to hit an average of 62.19 mb/d.
“This is mainly due to a lower oil supply forecast for Canada as Alberta’s announced a mandatory production adjustment, as well as downward supply forecast adjustments for the 10 non-OPEC participants in the Declaration of Corporation in the first half of 2019.
OPEC predicted the global economic growth to remain stable, stating: “The global economic growth forecast remains stable at 3.7% for 2018 and at 3.5% for 2019. While, OECD, growth in the US is also stable at 2.9% for 2018 and at 2.6% for 2019.
“Euro-zone growth remains at 1.9% for 2018 and 1.7% for 2019. GDP growth in Japan was revised down slightly to 1.0% for 2018, but stable at 1.1% for 2019. In the non-OECD countries, both India’s and China’s growth predicted to remain at 7.5% and 6.5% for 2018, respectively, and at 7.2% and 6.1%, respectively, for 2019.
