After many years of falling prices, the oil market is heading towards restoring the balance between supply and demand, according to the monthly report released Thursday by the Organization of Petroleum Exporting Countries (OPEC).
"There are increasing indications that the oil market is moving smoothly towards rebalancing," the organization said, adding that prices were improving, driven by lower inventories, good demand and geopolitical tensions.
Oil prices have risen in recent months after an agreement between Opec and non-OPEC producers, especially Russia, at the end of 2016 to cut production to counter the abundant supply at the global level.
It was decided to extend the agreement until the end of 2018 at a meeting in Vienna in November.
Oil prices rose above $ 70 a barrel after reaching in January 2016 less than $ 30, the lowest in 10 years.
"In December, the outlook for oil improved to levels we have not seen since late 2014," OPEC said in its report.
"The agreement to extend production cuts as well as the" North Sea supply disruptions boosted gains "after the damage to the pipeline network, which supplies 40 percent of the UK's oil and gas in the North Sea, after a pipe damaged.
OPEC raised its forecast for world oil demand last year to 96.99 million bpd and attributed it to "better data expected for Europe and China."
In 2018, world consumption was expected to reach 98.51 million barrels per barrel.
On supply, OPEC said global oil supplies rose to 57.79 million bpd in 2017 and would rise to 58.94 million bpd in 2018.
"The United States remains the main driver of non-Opec supply growth" as US oil production increases.
SOURCE
"There are increasing indications that the oil market is moving smoothly towards rebalancing," the organization said, adding that prices were improving, driven by lower inventories, good demand and geopolitical tensions.
Oil prices have risen in recent months after an agreement between Opec and non-OPEC producers, especially Russia, at the end of 2016 to cut production to counter the abundant supply at the global level.
It was decided to extend the agreement until the end of 2018 at a meeting in Vienna in November.
Oil prices rose above $ 70 a barrel after reaching in January 2016 less than $ 30, the lowest in 10 years.
"In December, the outlook for oil improved to levels we have not seen since late 2014," OPEC said in its report.
"The agreement to extend production cuts as well as the" North Sea supply disruptions boosted gains "after the damage to the pipeline network, which supplies 40 percent of the UK's oil and gas in the North Sea, after a pipe damaged.
OPEC raised its forecast for world oil demand last year to 96.99 million bpd and attributed it to "better data expected for Europe and China."
In 2018, world consumption was expected to reach 98.51 million barrels per barrel.
On supply, OPEC said global oil supplies rose to 57.79 million bpd in 2017 and would rise to 58.94 million bpd in 2018.
"The United States remains the main driver of non-Opec supply growth" as US oil production increases.
SOURCE