Petroleum Economist, a division of Euromoney Global Limited

Petroleum Economist, a division of Euromoney Global Limited

November 26, 2015 12:00 ET

OPEC Sec Gen Abdalla El-Badri: Uncertainties Ahead but Oil Market Supply and Demand Adjusting

LONDON, UNITED KINGDOM--(Marketwired - Nov. 26, 2015) - Writing in Petroleum Economist's Outlook 2016, Opec's secretary general Abdalla El-Badri commented that the global oil industry is adapting to market conditions, and that price stability in the year ahead can give market participants much needed calm for strategic development.

"The industry can expect to see a more balanced market in 2016 as global economic growth picks up, oil-demand growth continues its recent expansion, and non-Opec supply growth drops considerably," El-Badri wrote.

Emerging markets and those economies looking to evolve their energy platforms are expected to return to oil, with recession still straddling growth and major manufacturing slowdowns throughout much of Asia.

"Global demand for our crude in 2016 will be just over 30.8 million b/d, which is above the 30 million b/d Opec production ceiling that was maintained at the June 2015 ministerial meeting in Vienna. It's also a projected increase in demand for Opec's oil of over 1 million b/d compared with 2015, following an expected rise of around 600,000 b/d in 2015."

El-Bardi goes on to explain that one of the greatest impediments to market growth is the uncertainty around fluctuating prices; an issue that will hopefully be resolved in the coming months. With consumers, investors, and energy market producers feeling the pinch since the 2008 financial crisis uncertainty has flooded markets, with investors remaining uncommitted to projections. December sees the UN host COP21 in Paris and Opec's annual meeting, after which oil prices are expected to be less volatile.

The Opec secretary general was writing in Petroleum Economist's Outlook 2016, which features comment from across the oil and gas sectors, with experts such as Robin Mills, fellow at the Brookings Doha Center, Pedro Joaquin Coldwell, Mexico's secretary for energy, Michael Levi of the Council on Foreign Relations in New York plus a lot more. The publication has been hailed as pivotal reading to inform discussion on climate change and energy policy in the year ahead.

Extracts taken from Outlook 2016: Energy markets and politics in the year ahead published by the team behind Petroleum Economist. Experts and industry leaders take a look at what's in store for the year ahead. Emerging trends, geopolitical issues and regions are all explored.

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