By Zeynep Beyza Karabay
ANKARA
Global oil supply in October rose by 35,000 barrels per day to 94.2 million barrels per day compared to September, although demand still remains low while prices further decrease, according to the International Energy Agency's report.
The agency released its monthly oil market report on Friday, examining the oil market for October as well as making predictions for 2015.
Oil supply rose by 2.7 million barrels per day, mb/d, from last year due to yearly output increase in OPEC and non-OPEC countries, the report shows. Prices continued to fall up to November to below $80 per barrel as demand remained weak in the face of the rising supply.
Despite pressure on OPEC to reduce oil supplies, the organization's supply in October was 30.60 mb/d, above the group’s original target of 30 mb/d.
OPEC, dominating 40 percent of the world’s oil, has been under pressure to reduce oil production but no step has been taken towards that direction, although Venezuela and Ecuador, both member countries, are most vulnerable to falling oil prices.
According to the energy agency, oil markets are looking to Saudi Arabia for supply trends ahead of OPEC's meeting on Nov. 27 in Austria.
Non‐OPEC production showed a record increase of nearly two mb/d in the first 10 months of the year, pushing global oil supply to an average 93 mb/d. Non‐OPEC supply growth is projected to drop from this year’s high level of 1.8 mb/d to 1.3 mb/d in 2015, but is still evaluated as high, the report states.
Though demand is considered low compared to supply levels, global oil demand is to rise by 680,000 barrels per day in 2014 to reach 92.4 mb/d. In 2015, demand is due to rise by 1.1 mb/d to 93.6 mb/d, with recovering macroeconomic conditions.
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