Opec sees oil glut shrinking in second half of year
[LONDON] Opec has forecast that the world oil market will be more balanced in the second half of the year as outages in Nigeria and Canada help erode a supply glut that has weighed on prices more quickly than expected.
The Organization of the Petroleum Exporting Countries in a monthly report said its production fell by 100,000 barrels per day (bpd) in May led by Nigeria. It maintained forecasts of seasonally higher demand for its crude in the second half of the year and falling supplies outside the group.
"The excess supply in the market is likely to ease over the coming quarters," Opec said in the report. "Shutdowns in Nigeria and Canada tightened the oil market markedly and brought supply and demand more closely into alignment earlier than many had expected, bolstering prices."
Opec's report points to excess supply of 160,000 bpd in the second half of 2016 if the group keeps pumping at May's rate.
Excess supply in the first quarter was 2.59 million bpd, Opec said.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
Gold trades in tight range as market focuses on US economic data
Anglo American says it received unsolicited buyout proposal from BHP
Oil settles lower as US business activity cools, concerns over Middle East ease
Orsted says Taiwan wind project to power TSMC on track for 2025 finish
Gold edges down as Middle East worries ebb
Oil rises as dollar slips, focus shifts to economic data