World oil demand projected to grow in 2017

Abu Dhabi: In 2017, world oil demand is projected to grow by 1.15 million barrels per day from 2016 levels, and total oil consumption will a new record of 95.41 million barrels per day, according to the latest monthly report issued by Opec on Wednesday.

The report also said non-Opec supply in 2016 is expected to contract by 1.35 million barrels per day quarter on quarter mainly due to production shut-ins in Alberta, because of the wildfires in May, but output will again increase by 0.27 million barrels per day in third quarter of this year, partially due to the end of seasonal maintenance, the report said.

The output is expected to grow by 0.33 million barrels per day in the fourth quarter of this year, according to the report.

The report also talks about spending cuts on exploration and production due to the bearish oil price environment, impacting mostly non-Opec production performance. In 2015, the top ten major oil and gas companies, including two main service companies, cut spending by 15 per cent year-on-year compared to a decline of 6% in 2014 from a year ago.

For 2016, a further cut of 20%, with total spending of $135 billion, is anticipated, which is quite low compared to the $213 billion in 2013, the report said.