HOUSTON - The strong growth in oil demand is projected to continue in 2018 on the back of a robust global economy, said a senior executive of a leading global oilfield services company on Friday.

Paal Kibsgaard, chairman and CEO of Schlumberger, said that on the supply side, the extension of production cuts led by Organization of the Petroleum Exporting Countries (OPEC) and Russia are already translating into higher-than-expected inventory draws.

"In North America, 2018 shale oil production is set for another year of strong growth, as the positive oil market sentiments will likely increase both investment appetite and availability of financing," he added.

He also said that the production base in the rest of the world is showing fatigue after three years of unprecedented underinvestment. "The underlying signs of weakness will likely become more evident in the coming year, as the production additions from investments made in the previous upcycle start to noticeably fall off."

He concluded that all together this means the oil market is now in balance and the previous oversupply discount is gradually being replaced by a market tightness premium, "which makes us increasingly positive on the global outlook for our business."