OPEC report: World oil demand to grow by 1.26mbpd

According to the latest OPEC report, released on Tuesday, world oil demand in 2017 is expected to grow by 1.26mbpd, vs. 1.19mbpd prior, and now stands at 96.31mbpd.

Key highlights:

   •   Hikes OPEC demand forecast by around 200kbpd to 32.35mbpd
   •   Raises non-OPEC demand forecast to 400kbpd vs 240kbpd
   •   US forecast revised up to 100kbpd on a rebound in shale  
   •   Oil market to start balancing or will start to see an inventory drawdown in H2 2017
   •   Says OECD inventories in Jan above 5 year average at 278m despite the oil deal
   •   Reuters calc on secondary sources show 11 OPEC members with over 100% compliance
   •   11 members cut output to 26.681mbpd, 123kbpd over target
   •   OPEC secondary sources say output fell 140kbpd to 31.958mbpd
   •   Saudis say they raised output to 10.011mbpd vs 9.748mbpd but still below OPEC target  
   •   High compliance with supply adjustments by OPEC and some non-OPEC producers supported gains