OPEC says oil market will find better balance next year
OPEC Secretary General Abdullah el-Badri noted that the "market remains oversupplied." (Al Bawaba/File)
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Secretary general of the Organization of the Petroleum Exporting Countries (OPEC) says the global oil market will be "more balanced" next year as non-OPEC oil output has started to contract and global demand is increasing.
Addressing an oil and gas conference in Kuwait City on Sunday, Abdullah el-Badri said, "OPEC is confident that it will see a more balanced market in 2016."
"In recent months, there has been a contraction in production from non-OPEC producers and an increase in global demand," he added.
Badri, however, admitted that the "market remains oversupplied," and insisted that stability is paramount to the crude market, which faces "extremely challenging times," AFP reported.
The OPEC chief said market fundamentals do not support the sharp drop in oil prices, which have fallen by almost 60 percent since June 2014.
He went on to note that global demand for oil is forecast to rise to 110 million barrels per day (bpd) by 2040 from 93 million bpd now, adding, "This requires investments of USD 10 trillion between now and then."
Earlier on Sunday, Qatar's Energy Minister Mohammed Bin Saleh al-Sada, who is acting OPEC president, said there were signs of an oil price rise next year, adding that the oil price has "bottomed out."
Meanwhile, Venezuela, a major oil producing country, which has been trying hard to persuade other oil producers to cut output to boost prices, said on Thursday that a technical meeting of OPEC and other crude-producing countries is to take place on October 21.
Badri confirmed in his Sunday address that the meeting would take place at an expert level and that OPEC and non-OPEC producers will attend.
He said OPEC is ready to cooperate with non-OPEC producers to deal with the market glut if they would be willing as well.
Badri added that OPEC is of the opinion that the current problem in the oil market has been created by all producers, but especially by non-OPEC states which raised their production sharply.
"Non-OPEC [states] increased their output by 6.0 million barrels per day in the past six years, and OPEC believes this is the reason for the glut in the oil market," he said.
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