OPEC, which produces over a third of the world’s oil, said non-OPEC production will fall by about 610,000 barrels a day this year – about 180,000 barrels a day less than previously forecast.
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The Organization of the Petroleum Exporting Countries now expects production outside the cartel to increase next year, reversing its prior forecast for a decline, but US production is still expected to fall.
This means production outside the cartel is expected to rise by 200,000 barrels per day, against previous projections of a 150,000 b/d decline.
The cartel for the world’s largest oil producers kept its forecast for the rate of growth in oil demand for the backhalf of 2016 and 2017 unchanged.
“The main growth centres for next year continue to be India, China and the US”, OPEC said.
Demand for crude from the Organization of the Petroleum Exporting Countries will average 32.48 million barrels per day (bpd) in 2017, Opecsaid in a monthly report on Monday. The revision is mostly due to Kashagan, Opecsaid, as the long-delayed giant field finally starts up.
In July, the International Monetary Fund said the Russian economy would stay in recession for the rest of the year because of dual strains of low oil prices and the impact of Western sanctions imposed because of the Kremlin’s stance on crises in Ukraine.
Crude prices have been slashed from around $100 in mid-2014 to 13-year lows of below $30 at the start of this year.
Opec said that its weighted average benchmark price – known as the Opec reference basket (ORB) – recovered slightly in August to reach $43.10 a barrel, up 42c compared to the month before.
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Traders are now fixed on a meeting of OPEC countries and non-cartel member Russian Federation in Algeria later this month.
