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OPEC officials question upbeat outlook ahead of meeting

November 28, 2015 11:55 pm | Updated 11:55 pm IST - Vienna

Higher demand for the group's oil is expected in 2016 as supply from rivals decline.

OPEC officials questioned an upbeat forecast from the group's researchers in a meeting ahead of next week's gathering of oil ministers, with some sceptical there will be a quick easing of the supply glut in 2016.

The comments point to a less jubilant mood in the Organization of the Petroleum Exporting Countries (OPEC), whose oil ministers meet to set policy on Dec. 4, than during their last meeting in June. Oil has fallen to $45 a barrel on oversupply concerns compared to $65 last time.

"Market data is showing loads of uncertainties," said one source. OPEC's national representatives - officials representing the 12 member-countries - plus officials from OPEC's Vienna secretariat - met to discuss the market. The two-day meeting, called the Economic Commission Board, finished on Friday.

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OPEC's research team expects higher demand for the group's oil in 2016 as supply from rival producers declines, reducing the global supply glut. World oil demand is expected to rise by 1.25 million barrels per day.

One of the differences in views centered around whether OPEC's demand forecast is too optimistic. Another non-Gulf delegate was downbeat about the outlook.

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