Crude oil supply growth to outpace rise in consumption in 2018 – IEA

US crude oil inventories fell last week, but an unexpected build in gasoline stocks and weak demand for the motor fuel offset market optimism over the crude drawdown, the Energy Information Administration said on Wednesday.Data from the American Petroleum Institute showed on Tuesday that USA crude stocks rose by 2.8 million barrels in the week to June 9 to 511.4 million, compared with expectations for a decrease of 2.7 million barrels.Oil has declined nearly 8 percent this month amid speculation increasing USA supplies will offset production curbs by the Organization of Petroleum Exporting Countries and its allies including Russian Federation.That compares with analysts estimates in a Reuters poll for a 0.5 million barrel draw in gasoline stocks and a 2.7 million barrel draw in crude inventories. U.S. West Texas Intermediate (WTI) crude futures were at $44.85 per barrel, up 39 cents.Crude prices drifted barely weaker oi Friday in Asia with investors eager to see if USA shale drillers keep pouring on the heat for OPEC and allies or whether recent price falls bring a pause. Brent futures are trading at higher prices for further-dated contracts, which is an encouragement for more production rather than less. Production rose by 12,000 barrels a day to 9.33 million barrels a day.The increase in United States gasoline inventories drove down RBOB futures by more than 4 per cent, tugging Brent and USA crude futures lower with them, analysts said.The move is meant to drain the market of excess supply. New non-OPEC output next year will be more than enough to meet demand growth, the International Energy Agency said Wednesday in its first forecast for 2018.Gasoline inventories now sit at 242.4 million barrels, or 9 percent, above the five-year average of 223 million barrels, according to EIA data.More than half this growth will come from the USA, which the IEA expects to increase production by 430,000 B/D in 2017 and 780,000 B/D in 2018.”For total non-OPEC production, we expect production to growby 700,000 bpd this year, but our first outlook for 2018 makessobering reading for those producers looking to restrainsupply”, the IEA said.OPEC said on Tuesday a long-awaited rebalancing of the oil market was under way at a “slower pace” and reported that its own output in May jumped due to gains in nations exempt from a pact to reduce supply.Shale oil production is expected to continue growing in the U.S. The number of operating rigs there has increased for 21 straight weeks, according to oil field services company Baker Hughes.