OPEC reduced its demand growth estimate by 50,000 barrels a day to 1.05 million barrels in 2014. The cartel also reduced its 2015 demand growth estimate marginally to 1.19 million barrels a day. The IEA last month projected demand growth of 1.0 million barrels a day in 2014, rising to 1.3 million barrels a day next year. The U.S. EIA said Tuesday that it sees global demand growth this year of 1.0 million barrels a day, rising to 1.3 million barrels in 2013.
OPEC raised its non-OPEC supply growth forecast to 1.58 million barrels a day for 2014, up by 180,000 barrels over the August report. Non-OPEC supply is forecast to rise by 1.25 million barrels a day in 2015. The cartel said than non-OPEC sources reckoned that OPEC production rose 231,000 barrels a day in August to an average of 30.35 million barrels a day.
The swelling production and the lower demand forecasts are weighing on crude prices Wednesday morning. West Texas Intermediate (WTI) crude was trading down about 0.2% at around $91.30. Brent crude traded down about the same amount at around $99.75.
The U.S. EIA is scheduled to release its weekly inventory update later Wednesday morning, and analysts expect that crude oil inventories will be down by 1.1 million barrels. That probably won’t push pump prices up much, if at all, in the United States, where cheaper winter-grade fuel will begin making its way into retail stations beginning next week.
ALSO READ: Gas Prices Drop Below $3.25 in 10 States
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