OPEC forecast on Thursday that oil supply from non-member countries would fall more sharply next year, a development that would suggest its strategy reaffirmed last week of defending market share not prices is working.
The Organization of the Petroleum Exporting Countries(OPEC), said in a report that supply outside OPEC would decline by 380,000 barrels per day (bpd) in 2016, as output falls in regions such as the United States and former Soviet Union.
Last month, OPEC predicted a drop of 130,000 bpd.
OPEC’s report follows its acrimonious meeting on December 4, where it rolled over a policy of pumping crude without restraint. A year ago, Saudi Arabia pushed though an OPEC decision to defend market share instead of cutting output, hoping to slow growth in rival supplies.
The report also said OPEC members pumped more oil in November, adding to a supply glut, and forecast global oil demand growth would slow next year.
OPEC production, which has surged since the policy shift of November 2014, led by record Saudi Arabian and Iraqi output, rose by 230,000 bpd in November to 31.70 million bpd.
Source : Leadership