Just days before OPEC members will meet to discuss a production freeze the group has trimmed its 2016 global demand forecast.
In OPEC’s latest monthly oil market report, global oil demand is now expected to grow by 1.54 million barrels per day, down by about 50,000 bpd from the group’s previous forecast.
The downward revision is tied to “slower economic momentum in Latin America.”
Total global oil consumption is expected to hit 94.18 million bpd in 2016.
World oil demand grew by an estimated 1.54 million bpd in 2015, with total oil consumption reaching an average 92.98 million bpd, the report said.
The group’s non-OPEC supply growth estimate for 2015 has been revised up to 1.46 million bpd to an average 57.13 million bpd.
Non-OPEC oil supplies are expected to contract “slightly more” in 2016 than previously forecast, with output slated to decline by 730,000 bpd to an average of 56.39 million bpd.
OPEC natural gas liquids production is expected to grow by 170,000 bpd in 2016, up from 150,000 bpd in 2015.
Demand for OPEC crude in 2015 was estimated at 29.7 million bpd, unchanged from the previous month and 100,000 bpd than the previous year.
In 2016, demand for OPEC crude is projected to stand at 31.5 million bpd, broadly unchanged from the group’s previous report and 1.8 million bpd higher than 2015.
The value of the OPEC reference basket was up more than 20 percent in March and was hovering near $40 per barrel at the end of the month, the report said.
“Although fundamentally nothing has changed much, as oversupply persists, positive market sentiments continue to arise from the output freeze plan being considered by major crude exporters,” the report said.
OPEC members along with representatives from Russia, Oman and Bahrain will meet in Doha on Sunday to discuss a potential production freeze plan.
A representative from Mexico will also attend but only to observe the meeting.