“The rebound in oil prices can largely be explained by an improvement in sentiment toward demand and mounting evidence of cuts in non-OPEC supply”, said Julian Jessop, head of commodities research at Capital Economics.
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By contrast, it said non-OPEC supply would decline. The state-run Kuwait News Agency also quoted al-Omair as saying Kuwait’s production now stood at 3 million barrels of oil a day and that any USA decision to export crude oil wouldn’t have an impact on Kuwait.
OPEC also said it expects USA production to fall on an annual basis next year for the first time in eight years, increasing demand for OPEC crude to 30.8 million barrels a day.
Oil has been on a roller-coaster ride over the last few weeks, recovering from six-year lows in turbulent trade.
Brent for November settlement rose 38 cents to US$53.03 a barrel on the London-based ICE Futures Europe exchange.
In its report, OPEC pointed to a supply glut easing in 2016 and to a “more balanced” market.
“At OPEC, we are hopeful that the industry will see a more balanced oil market in 2016,” Mr El-Badri said.
“Smaller operators active in tight oil have been particularly affected by low prices, as they are usually pressed for cash”, Opec reports.
As a result, the “call on OPEC oil is expected to become healthier”, according to comments by Qatar’s energy minister, Mohammed Al Sada.
Kash Kamal, senior analyst at Sucden Financial, said, “However, with no reported change in the long term fundamental outlook, as a supply overhang continues to dominate the market landscape, we anticipate the risk premium that was factored in to front month Brent prices last week to dissipate gradually provided the current situation in Syria remains unchanged”.
The dollar hovered near a three-week low versus a basket of major currencies, anchored by doubts the U.S. Federal Reserve will raise interest rates by year-end.
Before the December meeting, OPEC has asked several non-OPEC countries – which OPEC has tried but so far failed to persuade to cut supply – to attend technical-level talks at its Vienna headquarters on October 21.
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The leading catalyst is the organization’s recently released oil market report, in which it slashed its expectations for USA oil production for 2016.
