OPEC surprised by North American oil production

Dec. 10, 2013 at 8:15 AM
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VIENNA, Dec. 10 (UPI) -- The Organization of Petroleum Exporting Countries said Tuesday oil supply growth from non-member states, mainly from North America, was greater than expected.

OPEC published its monthly oil market report Tuesday. It said supply from non-member states for the year is expected to increase by 1.2 million barrels per day. Non-members should be able to duplicate that level of production next year.

"Non-OPEC supply growth in 2013 has performed better than initially expected to stand at 1.2 million bpd," the cartel's report said. "Growth is supported mainly by the United States and Canada, adding around 1 million bpd."

Much of the oil production gains in North America have come as a result of the exploration of shale deposits.

OPEC said Canadian oil production should average 3.9 million bpd for 2013. Last month, U.S. oil production passed the 8 million bpd mark for the first time since 1989, the U.S. Energy Information Administration reported.

North American oil production gains means the U.S. and Canadian economies are relying less on foreign oil to meet their energy demands.

OPEC in its market report said demand for its crude oil in 2013 should average 29.9 million bpd, about 600,000 bpd less than 2012. Demand for OPEC crude oil next year should be 300,000 bpd less than 2013 levels, the cartel said.

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