“High-cost supply — primarily non-OPEC — is being forced out,” the IEA said. “Supply in the US — which had been the motor of growth — is already sinking swiftly.”
- Non-OPEC supply slipped 180,000 barrels a day (b/d) to 58.3m b/d in September as spending cuts of more than 20 per cent by the world’s biggest energy companies had an impact.
- Production is expected to average at this level for 2015, before dropping a further 500,000 b/d next year.
“The sharpest slowdown is in the US,” the IEA said. “Further reductions in drilling activity since the start of September is expected to accelerate declines in US light tight oil production.”
- US year-over-year gains have eased to just 300,000 b/d from 1.6m b/d in early 2015.
- OPEC crude supply — led by record Iraqi output, which offset declines from Saudi Arabia — rose 90,000 b/d in September to 31.7m b/d.
- Year to date the group has pumped 31.2m b/d, 1m b/d higher than the same period a year ago, before the cartel decided to keep the taps open to win back customers rather than defend prices.