World oil supply declined by 1.4 million barrels per day (bpd) in January due to extreme cold weather that shut down production in North America, according to the International Energy Agency's (IEA) latest report on Thursday.
Global supply totaled 101.5 million bpd last month after posting the sharpest monthly decline since December 2022, the IEA report showed.
'An extreme Arctic freeze' affected key oil-producing regions in the US and Canada, accounting for 66% of the global supply decline in January.
'Extreme weather conditions shut in more than 900,000 bpd of production across North America,' it added.
OPEC+ crude oil output from all 22 member countries fell by 330,000 bpd to 41.52 million bpd in January.
The decline was attributed to protests in Libya, which lowered production and caused output cuts from some of the group's members.
Production from OPEC's 12 members fell by 280,000 bpd to 26.73 million bpd, while flows from the 10 non-OPEC nations edged down by 50,000 bpd to 14.79 million bpd.
- Global supply projection
Global oil supply is set to increase by 1.7 million bpd to a record 103.8 million bpd in 2024, with non-OPEC+ providing 95% of the rise.
'This year's supply expansion will be dominated by the United States, Brazil, Guyana and Canada as they all scale new highs,' the agency said.
World oil demand is forecast to increase by 1.2 million bpd to 103 million bpd this year, but the pace of expansion is set to decelerate in 2024, compared with 2.3 million bpd last year, it explained.
The IEA expects output from OPEC+ to edge up by only 90,000 bpd this year.
'Global oil market balances tightened in January despite apparent demand weakness,' it said.
By Zeynep Beyza Kilic
Anadolu Agency
energy@aa.com.tr