OPEC sees decline in oil demand in 2018

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As U.S. shale producers and other competitors accumulate more in the oil market will be a surplus in 2018, despite the decline in production within OPEC, the company suggested on Wednesday.

In a monthly report, the Organization of the Petroleum Exporting Countries forecast the world will need 32.20 million barrels per day of crude from its members next year, down 60,000 bpd from this year as competitors accumulate more.

OPEC also reported a jump in the June issue to levels higher than the forecast average global demand for its crude oil this year and in the next, which hinders the efforts to reduce excess if it will last. OPEC officials continue to be optimistic.

In recent weeks, the OPEC production increased, partly due to the recovery of supplies from Libya and Nigeria, two members which were exempted from the supply cut.

In the report, OPEC said its production rose by 393,000 bpd in June to 32.611 million bpd, according to secondary sources used by OPEC to control supply, led by Nigeria and Libya, and also due to the additional barrels from Saudi Arabia and Iraq.

The OPEC production data means that it has complied with 96 percent of the reduction commitments, down from more than 100 percent in May but still a high rate by OPEC's historic standards.