OPEC in its latest monthly report has increased its forecasts for global oil demand next year that would outpace the growth of oil supply from both OPEC and non-OPEC sources.
In this month’s report OPEC said demand was set to grow by 1.28 million barrels per day in 2015 - an upward revision of 100,000 barrels per day since its last report. In 2016 demand is set to increase to 1.34 million barrels per day.
This would outpace projected non-OPEC and OPEC supply that would lead to a demand for OPEC crude in 2016 of 30.1 million bpd.
“This would imply an improvement towards a more balanced market. Better-than-expected momentum in the global economy, especially in the emerging markets, would contribute further to oil demand growth in the coming year,” stated the report.
OPEC reported an increase in its own production by 283,000 barrels per day in June, to average of 31.38 million bpd. This saw OPEC’s share of the world’s oil production grew by 0.4 per cent to 33.4 percent last month.
Saudi Arabia has hit a record high in monthly oil production, hitting 10.56 million bpd. Iraq said its daily production grew by 303,000 barrels to 3.59 million barrels last month.
Iran and Qatar also increased their monthly production levels, while Kuwait and the United Arab Emirates saw production declines.
Yemen’s oil production has slumped dramaticllay to approximately 16,000 bpd from a capacity of 150,000 bpd in the first quarter, according to an estimate by the country's petroleum exploration and production authority.