The IEA published its August Oil Market Report with revisions for its global oil demand forecasts for 2012 and 2013: down 0.3mmb/d and 0.4mmb/d respectively to 89.6mmb/ and 90.5mmb/d. These were a result of baseline revisions as well as weaker economic growth assumptions.
At 31.4mmb/d OPEC production for July was down 0.1mmb/d MoM on a downwards revised June production figure. The IEA recorded Iranian production 0.1mmb/d lower MoM at 2.9mmb/d, while Angolan production was also down 0.1mmb/d MoM. On the other hand, Iraqi production was up 0.1mmb/d to reach 3.0mmb/d. Saudi production showed no signs of easing, remaining at 9.7mmb/d.
July OPEC production was more than 1mmb/d above the call on OPEC and, at current levels of production, we expect the market to remain oversupplied through 2H12.Until that