As a result, OPEC raised the expected demand for its crude this year by 100,000 bbl/d to 32.02 million bbl/d.
Meanwhile, the EIA has reported that shale production in the US would reach an all-time high in July, at 5.475 million bpd and adding an additional rig to bring the total rig count to 719, continuing the twenty-two-week streak. With supplies plentiful, strong demand is needed to drive the market, but there are signs of a slowdown.
"In 2018, we expect non-OPEC production to grow by 1.5million bpd which is slightly more than the expected increase inglobal demand".
WTI was trading up 0.8% at $46.45 per barrel at 3:11pm EST-more than $1.50 per barrel lower than a week ago-with Brent trading at $48.74, compared to $50.05 per barrel last week.
In some of parts of the world, the stocks of oil are on record highs, and producers who are not a part of OPEC deal are ready to increase output. US crude futures, meanwhile, were down 3.4 percent to $44.92 a barrel, the lowest intraday level since May 5.
OPEC and 11 rival exporters including Russian Federation have agreed toextend an existing deal to limit supply by 1.8 million bpd toMarch 2018, in order to cut global inventory levels.
In November past year, when OPEC members agreed to cut production for the first time since the Great Recession, it was welcomed with great optimism and oil price jumped more than 20 percent, from $45 per barrel to as high as $55 per barrel (WTI).
According tneighboursncy's latest report, there have yet to be supply disruptions, but exporters of Qatar's crude, condensate and liquefied natural gas have already faced some logistical troubles.
"The rebalancing of the market is underway, but at a slower pace, given the changes in fundamentals since December, especially the shift in US supply from an expected contraction to positive growth", OPEC said in the report.
USA crude production this year is expected to rise by 430,000 b/d, with production ending 2017 around 920,000 b/d higher than at year-end 2016.
The bulk of the upward adjustment in non-OPEC oil supply since December "has come from the US", OPEC said. In contrast, China's imports from fellow Opec member Angola jumped 13.3% and those from allied producer Russian Federation gained 8.1%.