Investing.com- The global oil supply reached a record 100 million barrels per day, the International Energy Agency said in its latest forecast on Thursday.
Crude output from the the Organization of the Petroleum Exporting Countries and Russia, rose to a nine-month high in August, to 32.63 million bpd, due to a rebound in Libya production and increases from Iraq, Nigeria and Saudi Arabia, the IEA said. Non-OPEC supply was also up 2.6 million bpd, led by U.S. production.
However ongoing Iranian and Venezuelan falls in production could risk market tightness, Paris-based agency said.
Increased sanctions from the U.S. against Iran, which is a member of OPEC, has put pressure on the organization and could lead to market tightness. The financial sanctions against Iran will target the petroleum sector in November, when a global drop of crude supply is expected. OPEC agreed in June to raise output at a nominal increase of 1 million barrels a day (bpd) amid pressure from the U.S. to decrease prices.
Oil demand estimates were little changed, with the IEA predicting non-OPEC oil output growing by 2 million bpd in 2018 and 1.8 million bpd in 2019 amid "relentless growth led by record output from the U.S." Global oil demand is expected to be 100.29 million bpd in the fourth quarter of 2018 and 99.27 million bpd in the first quarter of 2019.
After the report, Crude Oil WTI Futures fell 1.56% to $69.27 a barrel as of 4:22 AM ET (8:22 GMT). Brent crude futures, the benchmark for oil prices outside the U.S., was at $79.00 a barrel, a decrease of 0.90%.