ABSTRACT
The rapid pace of inventory reduction, which has characterised oil markets since 1982, appears to be subsiding. Supply and demand figures for 1st Quarter 1984 for the non-socialist world imply a stock reduction of just under 1 MBD. production is running at close to 17.5 MBD. This is only slightly below 1st Quarter levels and is consistent with continued price stability. Prices for heavier Organization of the Petroleum Exporting Countries crudes have remained persistently above official levels, reflecting economic recovery in the industrial world and increased demand for heavy fuel oil. Preliminary statistics for the 1st Quarter 1984 show non-socialist world demand for crude oil running about 700,000 BD ahead of 1st Quarter 1983 consumption. Despite the significant reduction in Organization for Economic Cooperation and Development inventories which has occurred since the end of 1980, oil stocks remain high by historical standards.
