Petroleum: OPEC estimates a rebalance of the market in 2017

Petroleum: OPEC estimates a rebalance of the market in 2017

Editorial Staff
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Global demand will continue to grow, above all from non-OECD countries, set against an acceleration of the decline in production in the countries that make up the cartel

OPEC estimates a rebalancing of the oil market in 2017, with a global demand that will continue to grow, set against the acceleration of the drop in production in the countries that make up the cartel. Estimated at 95.41 million barrels per day, global demand is expected to grow by 1.15 million barrels a day, mainly from non-OECD countries. This is what is stated in the Organization’s monthly report. At the same time the non-OPEC countries should decrease production by 150 thousand barrels per day, a more sizeable amount than the estimates released so far by the organization, that quantified the drop in 110 thousand barrels per day. According to OPEC, demand towards its 14 member countries - Gabon has re-joined on July 1 last year to sign - will stabilize at 33 million barrels a day, less than the average production in the first half of this year. In July, OPEC member exporting countries pumped 33.1 million barrels per day, just over a third of world production. Regarding this year, OPEC has raised estimates of production by third countries by 90,000 barrels, as a result of a higher than expected output of the the US and UK. This amount is partially offset by an additional increase in demand, estimated at 30,000 barrels per day, to 94.26 million (+ 1.31% on 2015). On Monday the president of the Organization, Mohammed Bin Saleh Al-Sada (Qatar). announced an informal meeting of member countries on the sidelines of the 15th International Energy Forum scheduled September 26th to 28th in Algiers. Stressing that OPEC wishes to restore stability to the oil market, the president said that "the decline in oil prices observed in recent times and the current volatility of the markets" are only temporary and that a rise in prices is in the offing.