OPEC to mop up on oil; non-OPEC supply falls

13-Oct-2015

Supply from oil producers outside the Organization of Petroleum Exporting Countries is set to fall further in spite of a rise in global oil demand, the organization said in its monthly report Monday, adding that it was in the best position to mop up an increase in demand. 

In OPEC's October report, the 12-country producer group led by Saudi Arabia predicted world oil demand growth in 2015 to rise by 1.5 million barrels per day (mb/d), up around 40,000 barrels a day on the previous estimate. Total oil demand is now forecast at 92.86 mb/d and in 2016, demand is predicted to rise to 94.11mb/d. Its forecasts were "mostly due to better-than-expected data in the third quarter of 2015," OPEC said Monday, not specifying what data.

In a positive sign for OPEC, it forecast that demand for OPEC crude in 2015 is estimated to stand at 29.6 mb/d, 0.3 mb/d higher than the previous report and 0.6 mb/d above the previous year's level. It forecast that demand for OPEC crude would continue to increase in 2016, around 1.2 mb/d higher than the current year.

OPEC unto the breach

The forecast increase in global demand is good news for OPEC, coming at a time when low oil prices have forced many rivals to cut production and drilling projects as they contend with high production costs. (by Hollly Ellyatt, CNBC)