Global demand for oil will increase and the supply of raw materials from non-OPEC producers will be reduced, the Secretary General of OPEC, Abdallah Salem el-Badri, said at a conference in Kuwait City.
He noted that the oil industry’s “best days are yet to come”. "At OPEC, we are hopeful that the industry will see a more balanced oil market in 2016. We have recently seen a contraction in production from some non-OPEC producers and an uptick in demand growth," El-Badri noted.
The Secretary General of OPEC noted that the market remains oversupplied and stocks are above their 5-year average. According to him, global demand for oil is forecast to rise to 110 million barrels per day by 2040.
The chief executive officer of Kuwait National Petroleum, Mohammed Ghazi Al-Mutairi, said that the gap in crude oil supply and demand is due to close in the third quarter of 2016.
BP Plc Chief Executive Officer Bob Dudley pointed out that it will take time for oil supply and demand to rebalance. According to him, global demand for energy will grow by a third over the next two decades, Interfax reports.
