Report: Rising oil prices show a shrinking gap between supply and demand in the market
The Organization of the Petroleum Exporting Countries (OPEC) has maintained its optimism despite the pressures on the rapid rise in crude oil prices, the report said, adding that the Organization's confidence in the continued commitment by producers to the agreement to reduce production despite the temptation to rise the prices.
"The cooperation between producers in and outside OPEC is growing stronger and takes the formal institutional form to be a long-term strategy, not just temporary cooperation, which depends on the recovery of prices and the restoration of balance in the market," the report said.
The report highlighted the remarks made by the new OPEC president for 2018 Suhail Al Mazrouei, the UAE Minister of Energy, in which he stressed the continued adherence to the agreement, adding that "the Organization is not disturbed by market variables and has good policies and strategies to deal with mutations or price deflation, Continuous monitoring and evaluation taking place in the market at present, where the situation of the market is examined in general and not the performance of prices in a period. "
The report pointed out that Al Mazrouei affirmed that the market is currently witnessing many positive indicators and that the efforts to restore balance are witnessing steady progress, which is expected, but the matter under study is the period that the market will take to achieve this goal, noting that the commitment between producers reached the latest estimates 122 And OPEC is confident that this commitment will continue well in the coming period.
"There is a dynamic situation and a growing desire from producers to join the declaration of joint cooperation, and there are no indications that non-Opec production countries want to jump off the ship and end their commitments to the agreement," the report said.
The report stressed, quoting the President of OPEC, that "2018 will undoubtedly be a year to restore balance in the market, and that the commitment between the producers will remain strong and may increase strength over the current year, and must take into account that the demand may exceed 100 million barrels per day This year".
In the same vein, Mohamed Barkindo, Secretary General of the Organization of Petroleum Exporting Countries, on the sidelines of the 9th Energy Forum in Abu Dhabi, said that global demand for oil will rise to about 1.5 million this year.
"Global energy demand growth is expected to grow by about 96 million barrels of oil equivalent per day between 2016 and 2040, and about 23 per cent of this increase will come from China," he said.
He pointed out that a similar trend can be observed in the demand for oil, where global oil demand is expected to grow by 16 million barrels per day, from 94.4 million barrels per day in 2016 to 111.1 million barrels per day in 2040, noting that here too will witness China has a staggering 38 per cent of this growth.
Those indexes rose amid a record commitment by OPEC producers and independent producers to implement the world production cut agreement by 1.8 million bpd, which expires in December.
Global crude stocks fell broadly in the major industrialized countries, especially in the United States, and US stocks fell in the week ending Jan. 5 to their lowest level since August 2015.
On the other hand, the OPEC basket of crude fell and recorded a price of 67.17 dollars a barrel on Friday compared to 67.38 dollars a barrel the day before.
The daily report of the Organization of Petroleum Exporting Countries (OPEC) said that the price of the basket, which includes the average prices of 14 tons of production of the member states of the Organization, achieved the first decline after several previous consecutive gains, and the basket earned about two dollars compared to the corresponding day of last week, $ 65.86 a barrel. "
Both crude reached last week's levels since December 2014, with Brent hitting $ 70.05 a barrel and West Texas Intermediate at $ 64.77.