US News & World Report cited Qatar’s Energy and Industry, Minister Mohammed bin Saleh al-Sada as saying that oil prices have bottomed out ahead of an expected meeting of OPEC members and other oil producers later this month in Vienna.
According to Bloomberg, Al Sada announced in an e-mailed statement on Sunday that growth in non-OPEC crude oil supply had slowed “substantially” this year and is likely to remain flat or turn negative in the next.
“Call on OPEC oil is expected to become healthier,” going from 29.3m in 2015 to a projected 30.5 m b/d in 2016, he said, noting increasing demand from both developed and emerging markets.
Current low prices have “caused oil companies to reduce their capital expenditure by almost 20% this year from $650 billion in 2014,” he explained. “This trend of reducing investment in the oil industry could result in production shortfalls down the line.”