There are indications that the crude oil market is rebalancing at an accelerating pace and stability is fast returning, the Secretary General of the Organisation of Petroleum Exporting Countries (OPEC), Mohammad Sanusi Barkindo has said.
Speaking at the Abu Dhabi International Petroleum Exhibition and Conference, Barkindo said the oil stock overhang since the beginning of this year alone has dropped by more than 180 mb, based on the latest OPEC Monthly Oil Market Report published.
“The global economic growth dynamic has continued its momentum with the forecast for 2017 revised up to 3.7%, and the economic outlook is positive into 2018, expected to remain at 3.7%. Global demand growth for oil is higher and robust, and is expected to remain above 1.5 mb/d for both 2017 and 2018, higher than in the previous assessment.”
The oil market decline accelerated sharply in mid-morning trade on Tuesday as evidence of rising US output and a gloomier outlook for growth in an International Energy Agency report weighed on prices.