OPEC Predicts the Balance will be closer in 2016

In OPEC’s December Oil Market report the cartel reported that China’s slowing economic growth ant the strength of the U.S. dollar will help balance supply and demand in 2016. West Texas Intermediate closed at $38.17 on December 31, 2015 and in the first half of January 2016 fell to $28.94. OPEC production for December 2015 was down 211,000 barrels per day from the previous month. Global demand in 2015 averaged 92.92 million barrels per day and this is expected to rise to 94.17 million barrels per day in 2016. The report noted, “Combined OPEC and non-OPEC supply exceeds demand by about half a million barrels a day. That’s closer to balance.”