Oil: Non-OPEC supplies set to stabilize next year on US, FSU, Brazil – BAML

Heading into 2017, analysts at Bank of America Merrill Lynch are projecting non-OPEC supplies to stabilize, on average, against 2016 levels.

Key Quotes

“Countries such as Brazil, Kazakhstan, Canada and Ghana will continue to show year-on-year growth while the US is also set to increase output sequentially in 2Q. Taking into account declines elsewhere as they agreed to do, we see non-OPEC starting to post year-on-year increase from 2Q onwards, albeit relatively small. In this context, actual production changes from OPEC and Russia are likely to impact global balances in a much more meaningful manner in 2017.”