OPEC Maintains Demand Forecast for 2016

OPEC Maintains Demand Forecast for 2016OPEC Maintains Demand Forecast for 2016

Oil production expanded mainly in Kuwait, Iran and Saudi Arabia and declined in Nigeria, Venezuela and Iraq.

According to the OPEC experts, oil demand will rise in 2016 by 1.8 million barrels per day up to 31.5 million barrels. In 2015, demand for OPEC oil was at 29.7 million bpd, Sputniknews reported.

The Organization of Petroleum Exporting Countries has maintained its forecast for global oil demand in 2016, which is expected to grow by 1.2 million barrels to 94.18 million bpd.

In 2015, the global demand for oil grew by 1.54 million bpd and reached 92.98 million barrels, according to the organization's experts. The indicator remained unchanged compared to the previous forecast.

Analysts expect that in the next couple of months, the oil surplus will slow the accumulation of commercial oil reserves in the United States.

Forecasts on oil supplies from non-members of the organization have not changed since 2015 when they amounted to 57.14 million bpd. In 2016, the experts expect production in countries outside OPEC to decline by 0.74 million bpd to 56.4 million barrels.

Reportedly, OPEC's 30 million barrels per day ceiling, which does not specify quotas for individual members, has not contributed to oil market stability. Some OPEC member have enhanced their production rate based on their production capacity without paying attention to the production ceiling.

Oil officials believe that without the implementation of a systematic quota, OPEC cannot maintain control over the oil market. The quota ought to be based on a country's reserves, production capacity, population and gross domestic product.

OPEC will be a key player in the oil market in future, as it dominates a huge part of the world's oil resources.