OPEC increased its forecast for rival oil-supply growth for a second month running after a recovery in prices sent Brent crude to $70 a barrel.Continue the article by clicking here.
OPEC’s output cuts -- now entering a second year -- have been successful in eroding bloated stockpiles and lifting prices to a three-year high. Yet the rally has prompted concern that competitors in the U.S. will be emboldened to expand production.
“Higher oil prices are bringing more supply to the market, particularly in North America,” the Organization of Petroleum Exporting Countries said Thursday in its monthly report. The group raised its forecast for 2018 non-OPEC supply growth by 160,000 barrels a day, or 16 percent, to 1.15 million barrels a day.
Expected growth in total U.S. crude supply was revised higher by 110,000 barrels a day to 820,000 a day, led by conventional production. OPEC lowered its forecast for shale-oil output by 1.1 percent from last month’s report, to about 5.42 million barrels a day.
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