Global oil output sees slowest growth since 2013

New supplies from OPEC rivals will be more than enough to meet demand growth next year, the International Energy Agency said Wednesday in its first forecast for 2018.

The weakness on the supply side was driven by non-OPEC production which fell by 0.8 Mb/d, its largest decline for nearly 25 years, said the report.

Crude output from OPEC nations rose by 290,000 bpd in May to a 2017 high of 32.08 million barrels per day, according to the EIA.

Both Brent and USA crude have given up all the gains since the initial OPEC agreement in late November.

Oil stocks are near record highs in some parts of the world, and producers that are not part of the OPEC deal are increasing output.

OPEC and its non-OPEC allies are unlikely to remain impassive as USA shale producers and other non-OPEC countries not bound by the production agreement capture all the growth in market demand in 2018.

Increased oil production in the United States is hampering efforts to balance out market supply and demand, OPEC said on Tuesday.

Explosion near Afghanistan mosque kills at least 7 people
A senior diplomat was in Kabul on Tuesday to partake in the first meeting of a new peace initiative known as the " Kabul Process ".

The U.S. government's Energy Information Administration has raised its forecast for domestic output growth in 2017 to 460,000 bpd from a predicted decline of 80,000 bpd in December.

In Nigeria, production was up more than 174,000 bpd to 1.68 million bpd as supplies sidelined by militant attacks on energy infrastructure previous year came back into operation.

The dollar .DXY rose to its highest in more than two weeks, further weighing on oil by making it more expensive for buyers using other currencies. Even a fresh agreement in May, between the OPEC and participating non-OPEC producers, failed to lift price.

"I think there's evidence that we're starting to see reactions by shale producers", said U.S. Bank Wealth Management's Haworth, "New investments are slowing down". Supplies at the Cushing, Oklahoma, oil hub were down by 833,000 barrels. Also countries like Libya and Nigeria produces more oil.

Overnight, crude futures settle higher on Tuesday as investors looked ahead to fresh USA crude inventory data expected to show draw in crude stockpiles, offsetting concerns about an uptick in output from OPEC members.

He said he believed the price of worldwide benchmark Brent crude would have to drop to $45 a barrel before USA rig growth slowed.

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