U.S. set to pass Russia in liquid fuels production
BY BENOIT FAUCON
The U.S. is set to bypass Russia in the production of liquid fuels such as crude and ethanol this quarter, a top energy watchdog said Thursday, as global demand for oil is picking up faster than expected.
In its closely watched monthly oil report, the International Energy Agency (IEA) said that "including biofuels (ethanol and biodiesel), the U.S. is set to become the leading non-OPEC liquids producer as of the third quarter, bypassing Russia."
But the IEA, which represents some of the world's largest energy consumers, didn't say how U.S. output will fare compared with Saudi Arabia, the largest producer in the Organization of the Petroleum Exporting Countries (OPEC).
It added that stripping out biofuels and refinery gains, U.S. total liquids production would trail Russia by 500,000 barrels a day.
The news comes as North America is playing an increasingly pivotal role in responding to rising global oil demand amid a collapse in Libyan production.
Oil production from the U.S. and Canada combined is expected to grow 510,000 barrels a day in the third quarter, the IEA said.
Those extra barrels will have no problem finding buyers as the agency said global oil demand would be about 260,000 barrels a day higher than it had previously expected for this quarter. The IEA also upgraded its forecast for global oil demand growth for next year by 70,000 barrels a day as "the macroeconomic backdrop continues to improve."
That means the world's need for oil next year will increase by 1.1 million barrels a day, or 1.2%, to 92 million barrels a day.
Dow Jones Newswires