KUWAIT CITY, Nov 15, (Agencies): Price of Brent Crude, a major benchmark, in 2016 is expected to range between $50 and $60 per barrel (pb), a leading analyst has said. The OPEC meeting slated for Dec 4 will look into various issues and forecasts, to be considered when making new decisions on oil production and prices, analyst Mohammad Al-Shatti told KUNA on Sunday.
These are topped with the growing demand on oil by about 1.2 million barrel per day (bpd). Al-Shatti referred to a recent forecast by the International Energy Agency (IEA) that demand for oil would rise from 94.6 million bpd in 2015 to 95.8 million bpd in 2016. The expected rise will mainly come from developing countries, especially in Asia. A rise of 800,000 bpd was recorded in 2014, compared to an increase of 1.8 million bpd a year later.
According to Al-Shatti, falls in oil prices over the past months have acted like an incentive for more demand on the crude. The IEA also expected a decline in supplies from non-OPEC producers by 600, 000 bpd, from 58.3 million bpd in 2015 to 57.7 million bpd next year. Non-OPEC supplies rose by 2.4 million bpd and 1.3 million bpd in 2015. Demand for crude from OPEC rose by 1.6 million bpd in 2015, from 29.7 million bpd in 2015, to 31.3 million bpd in 2016, he said.
Meanwhile, other agency says prices of oil and other commodities will come under renewed pressure on Monday on fears that Friday night’s deadly attacks on Paris will further slow the global economy. Oil is already trading near its six year lows and healthy demand has been a major factor preventing the prices from sliding any lower amid a worsening global oil glut due to abundant supplies. At least 129 people were killed on Friday evening in a series of coordinated attacks on Paris with Islamist militants claiming responsibility for the carnage.