Opec as a whole pumped more oil in November than in any month since 2008 despite forecasting little demand growth for crude next year in a bid to defend market share.
Advertisement
Supply outside OPEC is expected to decline by 380,000 barrels per day (bpd) in 2016, the report said, as output falls in regions such as the United States and former Soviet Union.
Iraq’s output-based on secondary sources such as shippers, analysts and industry executives-rose by 247,500 barrels a day last month to 4.307 million barrels, the report said.
Mr Gorry said he expected a slow rebalancing of the market towards the end of next year, with production remaining stubbornly high despite low benchmark prices.
He added, “So you are talking about an industry that there is a massive lack of investment so the oil price can not stay at this level, because the supply is falling off quite dramatically”. Prices fell due to pessimist sentiment stemming from oversupply.
THURSDAY: As per organization’s monthly report, in 2016, Non-OPEC supply is likely to experience a drop over by approx.
The price of Brent crude fell to $38.90 a barrel at one point, before recovering slightly to $39.13 – still down 60 cents in the trading session.
Brent futures edged up 43 cents $40.54 per barrel, while the US WTI crude futures increased 31 cents and traded at $37.47 per barrel.
Despite that, OPEC left its forecast for 2016 world oil demand unchanged at 1.25 million bpd.
The group maintained projections for the amount of crude it will need to pump next year at 30.8 million barrels a day.
US gasoline futures were the only bright spot on the petroleum complex, rallying on concerns over a refinery outage and possible cuts in production.
BMI, a subsidiary of rating agency Fitch Group, said it saw “a soft recovery from 2017”, but an ongoing supply surplus in the market would keep oil prices range-bound in the mid-50s until 2018.
Advertisement
OPEC expects to sell more crude in 2016 than it did this year, partly because of the contraction in its competitors’ output.
