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OPEC 169th Meeting concludes

  • 2 June, 2016
    Expertos en Red
    OPEP
  • Summary:

    Having reviewed the oil market outlook for 2016, the Conference observed that non-OPEC supply, in response to market dynamics, peaked during 2015 and started declining, with supply expected to further decline by 740,000 barrels per day (b/d) in 2016. Today, crude oil alone is lower by more than 1 million b/d from its peak at the beginning of 2015. Global demand is anticipated to expand by 1.2 mb/d after growing at 1.5 mb/d during 2015. This demand growth remains relatively healthy considering recent economic challenges and developments.

    The Conference observed that, since its last meeting in December 2015, crude oil prices have risen by more than 80%, supply and demand is converging and oil and product stock levels in the OECD have recently shown relative moderation. This is testament to the fact that the market is moving through the balancing process. The latest numbers, however, still show OECD and non-OECD inventories standing well above the five-year average and these need to be drawn down to normal levels. The Conference also noted the very low investment level currently prevailing in the oil industry and emphasized the need to increase upstream investment in order to achieve long-term balance in the oil markets.

    The Conference re-emphasized the coordination between Member Countries and with non-OPEC producers to ensure market stability in the global oil market; to obtain reasonable and sustainable revenue for oil-producing nations; and to provide a stable, reliable, efficient and economic supply to consuming countries and a fair return to investors in the oil industry.

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