• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 4 hours Rioting and Protesting
  • 52 mins Trump waves a Bible
  • 8 hours Anti-Lynching Bill
  • 14 mins Coronavirus hype biggest political hoax in history
  • 4 hours US and Australia Sign SPR Lease Agreement
  • 12 hours Thugs in Trumpistan
  • 4 hours George Floyd’s History
  • 17 hours Model 3 cheaper to buy than BMW 3 series.
  • 17 hours Sudan Rice claims Russians are behind recent US riots
  • 6 hours Let’s Try This....
  • 17 hours China to Impose Dictatorship on Hong Kong
  • 17 hours We Are Better Than This
  • 17 hours Obamagate Is Not a Conspiracy Theory
  • 18 hours National Guard kills again
Solar Stocks Are Leading The Energy Market Recovery

Solar Stocks Are Leading The Energy Market Recovery

Renewables stocks have outperformed the…

Oil And Gas Rig Count Falls For Ninth Straight Week

Oil And Gas Rig Count Falls For Ninth Straight Week

Baker Hughes reported on Friday…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

OPEC Sees Oil Markets Balance Later This Year

OPEC sees the oil market balancing later this year, leaving its forecast largely unchanged.

In its latest Oil Market Report, OPEC projects that the global surplus in oil production will shrink to just 160,000 barrels per day in the third and fourth quarter as demand continues to rise and supply declines.

OPEC says that oil demand will rise by 1.2 million barrels per day (mb/d), a steady projection that is unchanged from earlier this year. China and India account for the bulk of the increased demand.

On the supply side, production will continue to fall. Non-OPEC supply will fall by 740,000 barrels per day this year, which is mostly unchanged from previous assessments but encompasses revisions to the production levels of individual countries. For example, OPEC revised down its projection for production from Canada, Brazil and Colombia but increased its forecast for output from the U.S., the UK, Russia and Azerbaijan. Non-OPEC supply will fall just 140,000 barrels per day in the second half of the year compared to the first, but will be down by about 1 mb/d from 2015 levels. Related: Oil Is Set To Rally Beyond $50

OPEC sounds relatively sanguine about the trajectory of the oil market balancing. Falling supply and rising demand “should result in a more balanced oil market toward the end of the year.” It notes that oil prices have climbed because of supply disruptions, a decline in U.S. output, strong demand, and a weaker dollar. OPEC’s projections hinge on steady global economic growth.

But oil prices fell back below $50 per barrel to start off the week on concerns over an economic slowdown in Asia. Also, worries over a potential “Brexit” grew as new polls showed that support for the UK to leave the European Union has increased since the last poll was taken. "The most recent oil price increase was driven by bullish market sentiment," Commerzbank analyst Carsten Fritsch told Reuters. "A Brexit could turn market sentiment around." The dollar gained on the news, which helped to push oil prices lower.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News