OPEC foresees higher oil demand in 2016
Global economic growth is expected to accelerate to 3.4% in 2016 compared with 2015 growth expectations which called for a growth rate of 3.1%, according to Saleh al-Sada. Global oil demand, meanwhile, may increase by 1.3 to 1.5 million barrels per day (bpd) in 2016 and this may stabilize the supply and demand balance. The Minister also reported that they expect demand for OPEC crude to increase to 30.5 million bpd in 2016 from 29.3 million bpd this year on the back of higher demand from both developed and emerging markets.
He also added that oil output from non-OPEC countries has been significantly reduced over the past five years and it is also expected to show zero to negative expansion in 2016.
In September, OPEC stated that they expect crude oil prices to gradually rise to $80/barrel by 2020 due to decreasing oil supply outside the organization. According to a report released by OPEC, the average oil price will rise by $5/barrel annually from an average of $55/barrel this year.
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