OPEC expects oil supply glut shrinking the second half of this year

OPEC expects oil supply glut shrinking the second half of this year

PM: 06: 04: 13/06/2016 Khandan



Khandan - predicted the Organization of the Petroleum Exporting Countries (OPEC) that the global oil market to become more balanced in the second half of this year at a time, which helps when some production in Nigeria and Canada crashes on the acceleration of the pace of contraction of oversupply.

The organization said in its monthly report that its production fell by 100 thousand barrels per day to 32.36 million bpd in May, including at least by 160 thousand barrels per day from its forecast for average demand for its crude in the second half, according to "Reuters".

Oil prices rose to $ 50 a barrel, the lowest level in 12 years, which amounted to $ 27 a barrel in January, as some cause disruption in production to reduce the oversupply of crude.

OPEC says that it accelerates the pace of shrinking the gap between supply and demand in the market which had expected anyway as it affects lower crude prices on the high cost of supplies from outside the organization.

OPEC said in the report, which was published on Monday, "is likely to shrink the excess supply in the market during the coming quarters, disrupted some production in Nigeria and Canada led to shrinking the gap between supply and demand in the market significantly and make the supply and demand more in line with each other sooner than many had expected, boosting prices. "

But she warned "However there are still a huge glut in supply."

Prices fell from $ 100 a barrel two years ago, a decline intensified after the organization refused to cut production in the hope that lower prices lead to a reduction of the production of competitors.

With the emergence of signs that the strategy is now bearing fruit, OPEC had been no changes to its policy of productivity during the second meeting of June.

Production and affected by the non-OPEC countries as a result of falling prices as companies delayed projects around the world, or abolished. OPEC expects production from the outside by 740 thousand barrels per day in 2016, led by the United States fell to little changed from last month.

OPEC production and turned to climb since the policy shift in 2014 until it reached its highest level since 2008 in April. And it led Nigeria According to the report, which was based on a minor decline that was recorded in May sources.

With expectations of increased demand for crude from OPEC production to 32.52 million barrels on average in the second half at a time when production falls outside the organization and rising seasonal demand, OPEC report refers to a deficit of 160 thousand barrels per day if the organization produces rates May remained.

OPEC said its production exceeded demand for its oil by 2.59 million barrels per day in the first quarter when prices reached the lowest level in 12 years.

OPEC has kept its forecast increase in global oil demand by 1.2 million barrels a day this year.

It is to be released the following report on the global oil supply and demand, which enjoys a strong follow-up on Tuesday for the International Energy Agency.

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