As OPEC members prepare to meet later this week the group’s secretary general said he expects a “more balanced market” in 2016.
OPEC secretary general Abdalla El-Badri wrote in Petroleum Economist’s Outlook 2016 that he believes the industry is adapting to current market conditions and said he expects firms to benefit from price stability and growing demand.
“The industry can expect to see a more balanced market in 2016 as global economic growth picks up, oil-demand growth continues its recent expansion, and non-Opec supply growth drops considerably,” El-Badri wrote.
The U.S. Energy Information Administration said earlier this month that Brent crude oil prices are expected to average $54 per barrel in 2015 and $56 per barrel in 2016.
The agency expects West Texas Intermediate crude oil prices to average $4 per barrel lower than Brent prices in 2015 and $5 per barrel lower in 2016.
While El-Badri said he hopes price uncertainty will diminish in the coming months, the secretary general gave no indication that OPEC will alter its current 30 million barrel per day production target.
“Global demand for our crude in 2016 will be just over 30.8 million b/d,” El-Badri said.
El-Badri added that demand for OPEC oil is projected to grow by over 1 million bpd next year compared with 2015, following an expected jump of around 600,000 bpd in 2015.
According to Platts, OPEC oil production totaled 31.08 million barrels per day in October, down 120,000 bpd from September and the lowest level since May.
OPEC announced in September that Indonesia is set to rejoin the group after suspending its membership in 2009.
OPEC is set to meet in Vienna, Austria on December 4.