The International Energy Agency (IEA) has released its oil market report for March, and if anyone is still looking for a reason for higher crude and gasoline prices, the answer should be pretty clear from this month’s report. The IEA estimates global demand to reach 89.9 million barrels/day in 2012, up 800,000 barrels/day (0.9%) from the 2011 total.
Global supply from non-OPEC countries is 53.5 million barrels/day and OPEC is producing 31.42 million barrels/day, the cartel’s highest production level since 2008. Saudi Arabia, for example, is producing more oil now than it has at any time in the past 30 years. Total global supply, then, is 84.92 million barrels/day.
That shortfall of 5 million barrels/day. Some of that is made up in natural gas liquids and refinery gains, but the simple reading remains true: demand outstrips supply.
Highlights of the IEA March report are available here.
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