LONDON: OPEC on Wednesday forecast higher demand for its oil in 2018 and said its production-cutting deal with rival producers was successfully getting rid of a glut, pointing to a tighter global market next year.
In a monthly report, the Organization of the Petroleum Exporting Countries said the world would need 33.06 million barrels per day (bpd) of OPEC crude next year, up 230,000 bpd from its previous forecast.
The 14-country producer group also said its oil output in September, as assessed by secondary sources came in below the demand forecast, even though output climbed slightly.
"With the market moving into the winter season, distillate fuel supplies are notably tight, representing a change from the excess supplies seen in the last two years," OPEC said in the report.
"OPEC and key non-OPEC oil producers continue to successfully drain the oil market of excess barrels."
OPEC said it pumped 32.75 million bpd in September, up about 89,000 bpd from August.