OPEC expects demand for oil to rise faster than previously expected this year, but the cartel also sees U.S. production rising faster.
X In its monthly report Monday, OPEC said it sees global demand increasing by 60,000 barrels per day to 1.59 million, putting total global consumption this year at 98.6 million bpd.
But the increase in production will come as non-OPEC production rises. The cartel now sees non-OPEC production rising by 1.4 million bpd, up by 250,000 bpd from its January report. U.S. production will lead the growth, with the cartel raising its U.S. production outlook by 150,000 bpd.
The OPEC report comes after the U.S. Energy Information Administration said last week that domestic production hit 10.25 million barrels per day in the prior week, a record high.
U.S. crude rose 0.8% to $59.57 a barrel after briefly retaking $60. Crude crashed through the psychologically important $60 mark Friday. Brent rose 0.5% to $63.14.
Exxon Mobil (XOM) shares rose 0.8% to 76.39 in the stock market today. Chevron (CVX) climbed 0.6% to 114.16. Exxon Mobil and Chevron, both Dow Jones industrial average components, missed fourth-quarter earnings estimates on Feb. 2.
Diamondback Energy (FANG), a shale producer that led energy stocks’ big moves late last year, advanced 1.9%. Diamondback Energy reports Q4 earnings on Tuesday.
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OPEC also said Monday that Saudi Arabia increased production by 23,000 bpd last month while Iraq added 30,000 bpd and Libya added 21,000 bpd.
The group has agreed to curtail production until the end of the year to remove 1.8 million bpd from the global market to reduce a supply glut and support prices.
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