Opec uncertain over non-Opec decline

OREANDA-NEWS. March 22, 2016. Non-Opec oil output forecasts for this year have "become more uncertain", Opec says in its latest Monthly Oil Market Report (MOMR). Investments are being deferred because of lower oil prices, but "there has been a reduction in production costs, mainly in the US, as well as increased hedging", it says, while some producers are opting to run at a loss rather than halt operations.

But the MOMR leaves its forecast for the decline in non-Opec oil production at 700,000 b/d in 2016, unchanged from the previous MOMR.

Total non-Opec output this year is put at 56.39mn b/d, 110,000 b/d up on last month's figure because of an upward adjustment in the 2015 figure (see table).