By BENOIT FAUCON
The US 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 said that "including biofuels (ethanol and biodiesel), the US 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 US output will fare compared
with Saudi Arabia, the largest producer in the Organization of
the Petroleum Exporting Countries.
It added that stripping out biofuels and refinery gains, US total liquids
production would trail Russia by 500,000 bpd.
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 US and Canada combined is expected
to grow 510,000 bpd in the third quarter, the IEA
Those extra barrels will have no problem finding buyers as
the agency said global oil demand would be about 260,000 bpd
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 bpd as "the macroeconomic
backdrop continues to improve."
That means the world's need for oil next year will increase
by 1.1 million bpd, or 1.2%, to 92 million bpd.
Dow Jones Newswires