OPEC sees oil demand up in 2016; Saudi pumps more

The Organization of Petroleum Exporting Countries (OPEC) expects demand for its crude to average 30.31 million b/d next year up 190,000 bpd from last month’s projections.

However, it trimmed 2016 demand growth estimates by 50,000 barrels a day to 1.29 million b/d on weaker economic outlook for China, the world’s biggest energy importer, and Latin America.

 “While the group of emerging and developing economies has been the main growth engine in recent years, it has become clear that growth in this group is slowing down,” the Vienna-based cartel said on Monday in its monthly market report for September.

OPEC, which pumps about a third of the world’s crude, said its total production inched up by around 13,200 barrels a day in August to 31.54 million barrels, compared with July, driven mainly by higher output from Nigeria, Saudi Arabia and Kuwait.

Saudi Arabia produced 10. 265 million barrels a day last month, down from 10.361 million barrels a day in July, according to the kingdom’s own estimates.  But according to secondary sources, the kingdom’s output was slightly higher at 10.362 million barrels a day, from 10.332 million barrels a day in July.

Supply from non-OPEC countries is seen to increase by 160,000 bpd next year, a downward revision of 110,000 bpd from last month.

Non-OPEC oil supply is expected to grow by 880,000 million b/d in 2015, following a downward revision of around 72,000b/d, due to lower-than-expected output in the US. In 2016, non-OPEC oil supply is expected to increase slightly 160,000 bpd next year, a downward revision of 110,000 bpd from last month’s projections.

“U.S. oil production has shown signs of slowing,” OPEC said in the report. “This could contribute to a reduction in the imbalance of oil market fundamentals, however, it remains to be seen to what extent this can be achieved in the months to come.”