Global Oil Demand Remains Healthy – OPEC

• Global Oil Demand Remains Healthy

The Organization of Petroleum Exporting Countries, OPEC, meeting in St. Petersburg Russia has said global oil demand remains healthy on a broad based.

According to the Saudi energy minister, Khalid Al-Falih conformity with oil cuts over 6 months is at about 98 percent.

While also stating that “Some countries continue to lag” in their compliance “which is a concern we must address head on,” the minister said.

Commenting on recovery in Nigeria and Libya, the minister said it is a welcome development. “The committee however should monitor the impact of such growth in supply on global supply-demand balances.”

Opec Secretary General, Mohammad Barkindo said Nigeria production is on course to meet 1.8 mbpd framework and would be adjusted accordingly once that level is attained.

The surge in inventories seen in the past have gradually adjusted to growing global demand, said Al-Fali.

However, Libya is not planning to join production cut until it reaches its target of 1.25 mbpd by December, which would have added 50 percent to the current production level of 840,000 barrels per day.