OPEC may need to cut 2014 output due to rising crude supply, Citigroup says
BY MAHER CHMAYTELLI
DUBAI (Bloomberg) -- OPEC may have to reduce crude output next year amid increasing supply from producers outside the group including the U.S., Canada, Kazakhstan and Brazil, according to Citigroup Inc.
“2014 looks like a year in which the Organization of Petroleum Exporting Countries will have to cut,” Citi said today in a commodities report. “Non-OPEC supply growth looks robust and demand growth remains underwhelming.”
Non-OPEC supply is expected to grow 1.7 million barrels a day in 2014, led by North American production, it said. The startup of Kazakhstan’s Kashagan field should contribute 100,000 barrels a day to non-OPEC output next year, while new oil projects should come on stream in Brazil. Demand for supply from the group, or so-called call on OPEC crude, could drop to 29 million barrels a day next year, the bank said. This would be a 1.11 million fall from the 2013 level.
OPEC, which set a collective production target of 30 million barrels a day in December 2011, will next meet to review targets on Dec. 4 in Vienna. Members of the group, which supplies about 40 percent of the world’s oil, are Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela.