OPEC’s new medium-term forecasts point to higher demand for the group’s oil, OPEC delegates said, a sign that its strategy of letting prices fall is discouraging supplies from competing producers.
The forecasts, to be published in OPEC’s World Oil Outlook later this year, are expected to be discussed on Thursday during the second day of a meeting of OPEC’s national representatives taking place at its Vienna headquarters.
“The new medium-term numbers show a higher demand for OPEC crude,” said one OPEC delegate, who added that oil prices are assumed to be lower than previously. “There is an impact on higher-cost producers.”
OPEC’s 2014 World Oil Outlook expected demand for its oil to fall to 28.50 million barrels per day (bpd) in 2016 from 30 million bpd in 2014 and assumed oil prices at around $110 a barrel to 2020 – more than double the current level.
The exact 2015 figures could still be revised following feedback from the national representatives, who are technical experts and do not set the Organization of the Petroleum Exporting Countries’ output policy.