• 4 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 7 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 10 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 13 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 22 mins The 5 Scary New Rules Of Upside-Down Capitalism
  • 3 hours Hydrogen Hurdles in Japan
  • 6 hours Winter Storms Hitting Continental US
  • 7 hours U.S. Shale To Break Records Despite Bearish Rhetoric
  • 1 day More dumbed down? re Hong Kong Act of Congress
  • 18 hours PennEast Appealing Wacky 3rd Circuit Decision to Supreme Court
  • 21 hours Impeachment S**te
  • 2 hours Pope Proposes New Sin: Thou Shalt Not Destroy The Harmony Of The Environment
  • 1 day Petroleum Industry Domain Names
  • 19 hours Contaminated Oil
  • 19 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 1 day U.S. Shale Output may Start Dropping Next Year
  • 16 hours Aramco IPO magic trick
  • 1 day Crazy Stories From Round The World
  • 19 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
Alt Text

This Large Oil Producer Is Facing A Major Refining Crisis

Nigeria, Africa’s largest oil producer…

Alt Text

North Sea Oil Is Doomed With Or Without Brexit

The seemingly endless Brexit saga…

Alt Text

Oil Sinks As Trade War Sentiment Turns Sour

Oil prices sank on Tuesday…

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
Download on the App Store Get it on Google Play