Industry and Energy

Home page

Industry and Energy

OPEC: Expected improvement regarding oil supply and demand should result in more balanced oil market

14 June 2016 10:00 (UTC +04:00)

Baku – APA-Economics. Provided that there is a clearer picture regarding oil supply and demand, the expected improvement in global economic conditions should result in a more balanced oil market toward the end of the year, according to OPEC Monthly Oil Market Report.

“The excess supply in the market is likely to ease over the coming quarters. To some degree, this has started to be seen in the slowing pace of inventory builds in US commercial crude stocks. World oil demand growth in the second half of the year is projected to continue rising by 1.2 mb/d to average 94.18 mb/d. On the supply side, non-OPEC supply in the second half of the year is anticipated to be some 140 tb/d weaker than in 1H16. Moreover, total US output will decline by 150 tb/d in the second half of the year compared to 1H16. With the recovery of production disrupted by wildfire, supply in Canada is expected to grow by 60 tb/d compared to 1H16. In the second half, demand for OPEC crude is expected to average 32.6 mb/d”, the Report said.