The global oil surplus will shrink next year amid growing demand and decreasing production, OPEC said in a new report. Via Bloomberg, global oil demand in 2017 is expected to increase at the same pace as this year, while production outside of OPEC falls. Bloomberg notes that U.S. oil output has fallen to a two-year low, while OPEC is still producing at near-record levels.
Meanwhile, there are signs that the oversupply of natural gas in the U.S. is decreasing as well. Citing EIA data, Reuters market analyst John Kemp noted that natural gas stock buildup is slowing down while consumption from industrial consumers and electric power generators is increasing. High productivity in Marcellus and Utica shale wells has been offset by production declines in gas fields in Texas, Louisiana and Oklahoma.
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