OPEC Sees Oil Market Balanced by End 2016

OPEC Sees Oil Market Balanced by End 2016

The Organization of Petroleum Exporting Countries  (OPEC) predicted that the global oil market will be more balanced in the second half of this year as demand rises and rival supplies falter, echoing views expressed by ministers at the group’s meeting this month, Bloomberg reported. OPEC kept estimates for world supply and demand in 2016 unchanged in its monthly market report.

Demand for OPEC crude in 2016 is projected at 31.5mb/d, unchanged from the last report and 1.8mb/d higher than last year. For 2015, demand for OPEC crude is also unchanged, averaging 29.7m b/d, which represents a decline of 0.1m b/d from the previous year, Hellenic Shipping News wrote, citing OPEC’s report.

The Vienna-based research department of OPEC said  that “the excess supply in the market is likely to ease over the coming quarters.”

Oil has surged about 80% from a 12-year low in February as the global glut is trimmed by unexpected disruptions and a slide in US output. However, OPEC did not set any output targets when its 13 members met on June 2nd, as the organization sticks with Saudi Arabia’s strategy of pumping without limits to squeeze rival producers.

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