Oil in Global Economy Series: Non-OPEC supplies expected to grow in 2017 and 2018

According to OPEC’s monthly oil market report, published this week, the oil supplies from major non-OPEC producers who are not part of the current supply-reduction agreement joined by non-OPEC countries like Russia are set to rise in 2017 and at a greater speed in 2018. Majority of the increase is expected to come from the United States, where shale producers continue to increase output. Data shows that in 2017, U.S. will contribute 63 percent to the total output rise. And in 2018, it will contribute more than 77 percent.

The chart shows, non-OPEC supply forecast for 2017 and 2018. Supplies from the United States are expected to rise by 0.6 million barrels per day in 2017 and by 0.86 million barrels per day in 2018. Overall in 2017, the oil supplies are expected to rise by 0.95 million barrels per day and in 2018, it is expected to rise by 1.11 million barrels per day.

According to data from the U.S. Energy Information Administration (EIA), the supplies have increased by 0.781 million barrels per day, beating OPEC forecast.