OPEC is projecting strong output growth from outside its cartel this year, driven by surging production in North America.
In its monthly report, OPEC highlighted how higher prices were bringing more supply to the market, with producers in North America appearing especially eager to raise output.
The report also highlighted the big improvement in efficiency of North American producers, driven by improved technology, which it claims has enabled them to lower their breakeven costs by around 50%.
Overall, the cartel expects non-OPEC supply to jump by around 1.2m barrels a day during 2018.
However, as the global economy continues to accelerate, OPEC also expects world demand to grow by 1.5m barrels per day.
Crude oil prices have seen a strong rally over recent months, buoyed by the agreement between OPEC and non-OPEC producers such as Russia to extend production cuts.
Brent crude now stands at $69 per barrel versus $55 per barrel at the beginning of 2017.
Brent was little changed on Thursday, trading 0.1% lower at $69.31 per barrel as at 1309 GMT.
Providing support for the market this week was a reported threat from militant group Niger Delta Avengers to attack Nigeria’s oil assets.
However, a supply report from the American Petroleum Institute on Wednesday was less supportive as it pointed to rising gasoline and diesel inventories.
“The upside is now limited for oil prices. US oil producers will ramp up production in the coming months,” said Fawad Razaqzada, a market analyst at Forex.com.