OPEC: oil demand to grow and production to decline this year
OPEC has published a report which predicts that the oil demand is expected to grow this year and extraction in the oil-exporting countries will fall, which will create positive trends in the global oil market.
World oil demand growth for 2016 remains unchanged from the previous report at 1.2 million barrels per day to average 94.18 million barrels per day.
The organization expects that other non-OPEC Asian countries, led by India, is anticipated to be the main contributor to oil demand growth in 2016. Similar to 2015, transportation fuels, supported by healthy vehicle sales and the low oil price environment, are projected to provide the bulk of expected growth, the report says.
Forecasts on oil supplies from non-members of the organization have not changed since 2015 when they amounted to 57.14 million barrels per day. In 2016, the experts expect production in countries outside OPEC to decline by 0.74 million barrels a day to 56.4 million barrels. Downward revisions were seen mainly in Canada, Brazil and Colombia. These are offset by upward revisions in the US, the UK, Russia and Azerbaijan.
Azerbaijan's oil production will average 0.85 million barrels per day (bpd) in the second quarter of 2016, which is 20,000 bpd less than in the first quarter of the year, according to the OPEC's forecasts, published in its June Oil Marker Report.
OPEC's estimates show that the country's oil production declined by 20,000 bpd to average 0.87 million bpd in April 2016.
Average annual output growth was revised by cartel by 20,000 bpd, compared with the previous month, therefore annual output is expected to decline year-over-year by 20,000 bpd to reach 0.84 million bpd.