Demand for oil will strengthen this year, according to OPEC, as the cartel said its strategy of pumping oil into the market to squeeze out US producers was taking effect.
The Organisation of the Petroleum Exporting Countries, which pumps a third of the world’s oil, believes demand will average 29.27m barrels per day (bpd) in 2015, representing an increase of 80,000 bpd from its previous prediction.
“Higher global refinery runs, driven by increased seasonal demand, along with the improvement in refinery margins, are likely to increase demand for crude oil over the coming months. Given expectations for lower US crude oil production in the second half of the year, these higher refinery needs will be partially met by crude oil stocks, reducing the current overhang in inventories,” OPEC said.
The body believes non-OPEC supply will rise by only 680,000 bpd this year, down from its previous forecast of 850,000 bpd. This reflects lower expected output from the United States and other non-member countries.
Full article: Oil prices: OPEC plan to strangle US suppliers working (The Telegraph)