Global oil supply to contract with latest price tumble
IEA says it’s the biggest decline in more than 20 years.
PARIS — The International Energy Agency forecasts a sharp drop in oil supply from the United States, Russia and other non-OPEC countries because of continued low oil prices.
In its monthly forecast, the IEA says non-OPEC production is expected to drop nearly half a million barrels per day to 57.7 million barrels a day, calling it the biggest decline in over two decades.
It said OPEC supply remains higher than last year, but declines in Saudi Arabia, Iraq and Angola pushed OPEC crude supply down in August to 31.6 million barrels a day.
The agency forecast growth in oil demand this year and a slight drop next year.
Amid booming US production and high OPEC output, benchmark oil prices plunged from near $100 a year ago to about $45 this week.