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KAMCO: Oil prices hit highest level in three years

KUWAIT, Jan 21 (KUNA) -- The price of oil has surged to a three-year high of nearly USD 70 per barrel amid a sharp dip in Libya's oil output, KAMCO Investment Company reported on Sunday.
In a report issued by the company, KAMCO attributed the increase in oil prices to the current turmoil gripping OPEC powerhouse Venezuela and the decline in US oil reserves.
Meanwhile, it pointed out that the International Energy Agency (IEA) has prognosticated that demand for oil is likely to grow at a slower rate of 1.3 million barrels per day (bpd), as a number of non-OPEC member nations switch to natural gas.
IEA estimates that production growth in non-OPEC member nations would bump supply from outside the cartel higher by 1.7 million bpd in 2018.
The average price of OPEC crude oil made significant gains in 2017 after a three-year decline, reaching USD 52.4 per barrel as compared to USD 40.8 in 2016, the report showed.
Global oil demand also accelerated at the tail-end of 2017, growing to 97.4 million barrels a day, the result of increased supply from non-OPEC member nations, it added.
IEA has raised its forecast for oil supply from countries outside OPEC in 2018, with an amended figure of 58.9 million bpd, the report said. (end) fh.ht.nam