Demand for crude oil will rise by 1.2million barrels per day in next year, despite the current glut, according to the President of the Organisation of Petroleum Exporting Countries OPEC, Dr Ibe Kachikwu.
Kachikwu, Nigeria Minister of State for Petroleum, said in a statement signed by Ohi Alegbe, NNPC’s Group General Manager, Group Public Affairs Division, yesterday in Abuja, that the expected rise in demand would average 30.8 million barrels per day in 2016, leading to a more balanced market.
The OPEC president was speaking at the 168th, Ordinary, Meeting of the Conference of the OPEC held in Vienna, Austria.
According to him, dialogue and collaboration with consumers, non-OPEC producers, oil companies, and investors are essential to attaining the common goal of a more orderly oil market. “In 2015, we have seen positive examples between OPEC and non-OPEC countries, and the Asian ministerial energy roundtable held in Qatar in November.
“OPEC has also held bilateral dialogues with Russia and China this year, and later this month the OPEC-India energy dialogue would have its first meeting,’’ the statement quotes Kachikwu as saying. It said the world oil demand in 2015 grew by 1.5 million barrels per day, up from 1 million barrels per day in 2014.
“Next year, we foresee a growth of 1.3 million barrels per day to average 94.1 million barrels per day, with most of this growth coming from non- Organisation for Economic Co-operation and Development, OECD, countries,’’ it said.
Further, the statement said non-OPEC countries would continue to see significantly reduced production growth as compared to past years as it affects supply, stressing, “in fact, in 2016, we anticipate a contraction in non-OPEC oil supply.”
The statement added that its member countries are taking part in the climate change negotiations in Paris. It said that member countries were committed to the goal of full, effective and sustained implementation of the UN framework convention on climate change.