That’s almost two-thirds of the global growth in oil production. Of that daily count, 3.3 million barrels were contributed by USA producers.
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“Non-Opec supply is expected to fall in 2016, only one year after the deep cuts in investment”, he said.
The Southeast Asian nation suspended its membership in January 2009 after becoming a net oil importer. In a report (paywall) by the Financial Times, unidentified Saudi officials gave no indication how much in total the country is prepared to borrow, but half of GDP could mean hundreds of billions of dollars in bond sales.
The refinery is tentatively planned to have capacity of 300,000 barrels a day, with the contract signing expected by the end of this year, Said said Monday.
The oil complex as a whole has been weakened by concerns that stockpiles of refined U.S. oil products such as heating oil were also growing, with refineries ramping up output as they emerge from maintenance season amid milder-than-usual weather. It will take time for the market to balance out the supply and demand for the fuel. The size of the world’s middle class will expand from 1.8 billion to 3.2 billion in 2020, and to 4.9 billion in 2030, with the bulk of this expansion occurring in Asia, he said.
The price of crude – trading below $50 a barrel – may remain near current levels next year and in 2017, Birol said.
Al Mazroui did not elaborate on how global oil prices would rise, other than saying the Opec wouldn’t be able to do it alone.
Any decrease in oil production will likely not happen overnight.
He said: “Despite all the macroeconomic uncertainties engulfing the global economy, oil demand continues to grow at a robust pace and is set to increase by 1.5 million barrels per day (b/d) in 2015, the strongest growth seen in the past few years”.
The Organisation of the Petroleum Exporting Countries meets to review policy on December 4.
The comments suggest the OPEC heavyweight is satisfied with its strategy of not cutting its production and allowing low prices to reduce supplies, without losing its market share against competitors.
Oil demand will soon reflect the “attractiveness” of the current level of crude prices, and Asia will be a vital engine of economic expansion for decades, Saudi Oil Minister Ali al-Naimi said.
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“Crude oil imports should be well supported by the completion of new storage facilities by independent oil players in China, as authorities open up the refining sector”, ANZ analysts said of China in a note.
