OPEC frequently discusses its view on oil demand. Well, the OPEC oil demand outlook was just raised:
In fact, OPEC sharply raised its 2018 demand forecast by 400K bbl/day from last month’s outlook to 33.4M bbl/day, ahead of the cartel’s scheduled Nov. 30 meeting to discuss whether to extend production cuts beyond next March.
OPEC expects demand to reach 34M bbl/day in H2 2018, ~1.4M bbl/day above what the group pumped last month, according to the group’s monthly report. Production from OPEC’s 14 members shrank by 151K bbl/day in October to 32.59M bbl/day as a result of lower output from Irag.
Stronger demand has combined with the 1.8M bbl/day of cuts by OPEC and other countries including Russia since January to help tighten the market, pushing Brent crude back above $60/bbl for the first time in two years; at last check, Brent was at $63.50/bbl, WTI was at $57.07/bbl.
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