LAGOS AUGUST 9TH (URHOBOTODAY)-Oil producing countries may heave a sigh of relief as the Organisation of Petroleum Exporting Countries (OPEC) has postulated that oil prices will rise in September through December as demands for oil is expected to increase.
According to a statement by OPEC which quoted Mohammad Al-Sada, its President, the global demand for oil has improved since February 2016 and oil prices had experienced a steady improvement following a decline in crude oil production.
He added that the recent decline observed 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 economies of major oil consuming countries is 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 third and fourth quarters of 2016, coupled with decrease in availability is leading the analysts to conclude that the current bear market is only temporary and oil price would increase during later part of 2016.
“OPEC continues to monitor developments closely, and is in constant deliberations with all member states on ways and means to help restore stability and order to the oil market.”