/ world today news/ The oil market will be more balanced next year because production is shrinking and global demand is increasing, according to OPEC president Abdallah Salem el-Badri.
“We hope that the industry will see a more balanced oil market in 2016. We have recently seen a contraction in production in some non-OPEC countries, but growth in demand,” el-Badri told a conference in Kuwait this Sunday.
El-Badri expects global oil demand to rise to 110 million barrels per day by 2040, from 93 million barrels per day today. He added that investors can be optimistic about the future of the oil industry in the coming months: “We have to continue with investment, it is vital for our industry. I am confident that the best days for the sector are yet to come.”
Qatar’s Energy Minister Mohammed Al Sada backed the OPEC president’s optimism, saying oil prices had bottomed out and there were signs a recovery was on the way in 2016. Qatar is one of the largest oil producers in the world with 2.3 million barrels per day.
OPEC output in July hit a three-year high as the organization’s 12 member countries produced 31.1 million barrels per day. The cartel boss said at the time that oil prices would not fall as demand rose and production fell. He added that the cartel would not deter oil production.
Last month, OPEC signaled a change in position. The cartel can cut output and is willing to negotiate with other producers. But this is possible only with a change in the policy of the largest producer – Saudi Arabia.
In June, even though prices were falling, the cartel decided to keep the production quota at 30 million barrels per day, sending prices below $50 a barrel.
Translation: Evgeni Rushev
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