An analysis of seasonality of non-OPEC supply

The purpose of this study is first to find out whether quarterly averages of non-OPEC (Organization of the Petroleum Exporting Countries) supply follow a seasonal pattern. If that is mathematically established, then, second, it is attempted to estimate the best seasonal factors to decompose the forecast yearly average into quarterly averages. A set of historical data consisting of quarterly supply averages of individual countries, regional subtotals and the aggregate non-OPEC supply for the period 1973-2002 forms the basis of the analysis. The study applies Fourier analysis to quarterly supply series to test for seasonality, and provides estimates of seasonal factors for the years 2000-2002 by applying the so-called X-11 decomposition method to the historical annual averages. The accuracy of the results of the application of X-11 is then tested. It is demonstrated that the combination of the Fourier and X-11 methods provides mostly acceptable and in some cases, such as that of China, impressively accurate forecast quarterly supply averages.