OPEC President: despite the current decline, oil market on the path to rebalancing

VIENNA, 8th August, 2016 (WAM) — Dr. Mohammad bin Saleh Al-Sada, Qatar’s Minister of Energy and Industry and current OPEC President, has said that higher oil demand is expected in the 3rd and 4th Quarters of 2016, expressing positive sentiments.

In a brief released by OPEC, he added that since February of this year, the oil price had experienced a steady improvement following a decline in crude oil production, supply outages and a decrease in oil inventories, while the global demand for oil improved.

Dr. Al-Sada said that the recent decline in oil prices and the current market volatility is only temporary. “These are more of an outcome resulting from weaker refinery margins, inventory overhang, particularly of product stocks, timing of Brexit and its impact on the financial futures markets, including that of crude oil,” he said.

The Minister said that the economies of major oil consuming countries are expected to improve, which in turn would augment oil demand in the coming quarters, especially in preparation for the approaching winter season in the Northern Hemisphere. This expectation of higher crude oil demand in Qs 3 and 4 of 2016, coupled with a decrease in availability, is leading the analysts to conclude that the current bear market is only temporary and oil prices would increase during the latter part of 2016.