Still, output wont match 2015, which was the biggest year for US production in 35 years.
Barkindo said the current oil-price cycle is “probably the most severe” that OPEC has ever faced and that the market has taken a long time to re-balance.
Crude oil prices inched slightly higher Monday amid hopes the U.S.
With demand of 85.1 mboe/d in 2014, crude is expected to see the slowest growth over the next two and a half decades.
“The outcome of the USA election adds to the challenges for the oil exporters because it likely leads to weaker economic growth in an already fragile global economy”, he said.
It’s no secret that oil prices have been unstable this year, as OPEC outlined in its 428-page World Oil Outlook report. OPEC met on October 28 to hammer out details of an agreement that could cap output levels for member countries.
The 14 OPEC nations are more interested, however, in doing something about short-term prices. Opec members Iraq and Iran represent a “sticking point” that needs a resolution if there is to be agreement to limit production, he said.
It isn’t clear whether Russian Federation would join OPEC’s production cut. “Action today will be dictated by results from the USA election”, said ANZ bank in a note.
The chief executive of US oil giant Exxon Mobil (XOM.N), Rex Tillerson said on Monday that global oil supplies have exceeded demand by 1 to 1 million barrels per day since the start of 2015.
US crude production is already on an uptrend as producers are eager to capture the rising prices.
Opec sees demand rising from 93 million barrels per day in 2015 to 99.2 billion in 2021, an increase of one million barrels per day from its forecast previous year. Wood Mackenzie estimates that by 2020, middle distillate margins could average as much as $25 per barrel, almost triple this year’s average of just over $9 per barrel.
Brent crude futures only started trading shortly before 0100 GMT, highly unusual for the global oil benchmark, and was trading up 16 cents from its last settlement, at US$46.20 per barrel at 0110 GMT.
Meanwhile, Russia’s oil production is expected to rise to 555-560 million tonnes by 2020, Russian Deputy Energy Minister Kirill Molodtsov told an industry conference on Wednesday. But in the long term, additional energy efficiency measures and the potential for new technological development of alternative fuel vehicles, have led to oil demand in 2040 dropping slightly to 109.4 mb/d, a downward revision of 0.4 mb/d compared to past year. The number of active oil rigs in the USA has risen by more than 100 since oil prices plunged below $30 a barrel early this year. About 20 rigs have been added in just the past month.
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