The global oil market is "well-supplied," despite predictions that the market share of the Organization of Petroleum Exporting Countries (OPEC) is likely to slip in 2014, due to increased production from non-OPEC countries, the organization announced.
OPEC expects that next year its average daily production will reach 29.6 million barrels, which is slightly lower than last month's prediction, Reuters reported. This estimate is about 320,000 barrels per day lower than the average in 2013.
The members of OPEC will have to make up for the virtually stopped production of Libya but the latest monthly report stated that the inventories of oil supply across the most developed OECD countries are sufficient for almost two months of consumption. Despite Libya's practically non-functioning oil industry, OPEC's crude supply still outstrips demand. In August supply fell by just 124,000 barrels per day to 30.23 million barrels per day. Extra oil production from Saudi Arabia contributed to the balance, OPEC's report noted, quoting secondary sources.
Overall, the growth in global oil demand for 2014 is pegged at 1.04 million barrels per day, with supplies from non-OPEC countries expected to increase to 1.22 million barrels per day. The increase in U.S. oil production is also set to play a major role in the global growth of oil supply in 2014, the report added.