International Energy Agency in its Oil Market Report (OMR) for February says that whereas non-OPEC output slowed, global supply remains larger than in early 2013. The agency also says that global supplies fell by 290 000 barrels a day (290 kb/d) in January, to 92.1 million barrels a day (mb/d).
However, the IEA Oil Market Report (OMR) for February says that year on year supplies were up 1.5 mb/d, as steep growth of 1.9 mb/d in non‐OPEC output and OPEC natural gas liquids from January 2013 surpassed a drop of 390 kb/d in OPEC crude production. The report in its forecast says that non‐OPEC supply growth for 2014 is unchanged at 1.7 mb/d.
The IEA says that demand growth is expected to accelerate in 2014 in line with the broader economy. It says that OECD oil demand growth rebounded in the second half of last year. Also, global refinery crude runs are set to fall by 2.8 mb/d from December through April on seasonal plant maintenance.
Iran Exports Record Oil after Economic Sanctions Eased Post-Nuclear Deal
The agency says that year on year, global throughputs are set to grow by 1.1 mb/d in the current quarter to average 76.6 mb/d, led by the United States, China, Russia and the Middle East. On the other hand, sales of Iranian crude oil rose by 100,000 barrels a day in January this year. It went up to 1.32 million.
The country earlier the last year agreed to halt nuclear program after a lot of hostility from the U.S. In consequence now Iran can export oil and the net increase in export of oil is an outcome of the same deal with the U.S. as it eased some of the Western sanctions against it. Though there is opposition that the nuclear deal has disproportionately favored Iran, the U.S. is willing to give leeway.
Iran which lost a lot of revenue due to economic sanctions on its oil export negotiated hard during the nuclear deal and the Obama administration agreed that Iran’s oil exports would not increase, remaining around one million barrels a day.
At the same time the Obama administration has warned repeatedly that the temporary agreement should not be interpreted as a signal that these sanctions will be dismantled as these depend a lot on what and how Iran progresses in its commitment on nuclear agreement.
To contact the reporter of this story: Jonathan Millet at email@example.com