Supplies rise in face of plunging oil price

Crude production continues to rise and demand remains tepid in spite of the falling oil price, according to figures from the IEA.

On the supply side, output is rising even as oil companies slash their exploration and production budgets, delay projects and slow drilling. In December, global output rose by 155,000 barrels a day (b/d) on November’s figures, with Opec and Non-Opec countries both contributing to the rise, according to International Energy Agency (IEA) figures. Production was 2.1 million b/d higher than a year ago. Libyan output was hit by a resurgence of violence in the country, but surging Iraqi production more than offset the decline, leading Opec supplies to rise by 80,000 b/d in December. Rising US shale oil supplies made up for declines across many other parts of the world non-Opec production increased