OPEC relies on the balance of the market even after the increase of production in October – the Observer

OPEC is confident that the imbalance between supply and demand go disappearing in the future, even after the oil production has continued to increase in October, precisely when the large producers have increased the contacts to reduce excess.

In the report of November about the situation of the oil market, the Organization of Petroleum Exporting Countries (OPEC) stresses that the world’s supply of oil in October reached 96,32 million barrels per day, increasing by 1% in September and above the demand estimated.

For this excess supply has contributed to both the 14 members of OPEC as the producers that are not part of the organization.

According to the secondary sources mentioned by OPEC, the group has produced over 0.7% in October, even after the previous month have reached an agreement in principle to freeze or reduce the supply and thus prices rise, reached from two years ago by the excess supply.

An agreement that is expected to start to materialise with numbers at the next meeting of OPEC 30 November in Vienna.

Even so, the OPEC is confident that the imbalance between supply and demand go disappearing in the future.

According to the calculations of OPEC, the excess supply – which in 2015 was about two million barrels per day, fell to 270.000 barrels per day in the third quarter of 2016.

in 2017, OPEC predicts demand for 95,55 million barrels per day and that the contribution of the competitors and other hydrocarbons and non-conventional is 62,86 million barrels per day.

The difference, of 32,69 million barrels per day, which would be covered by the OPEC coincides exactly with the demand forecast that the group computes for OPEC oil in 2017, or is the balance between demand and supply.

In the report, OPEC ensures that this year oil reserves grew more slowly due to "an increase in the slower of the supplies.

Thus, the inventories would be currently of about 304 million barrels in the set of industrialized countries (OECD), against 350 million barrels last year.

According to the OPEC, "the adjustments in the supply of both OPEC as non-OPEC, will accelerate the reduction of considerable excess of global oil reserves and will help to anticipate the rebalancing of the market."