OPEC predicted that the global oil market will be more balanced in the second half of this year as demand rises and rival supplies falter, echoing views expressed by ministers at the group's meeting this month.
The Organization of Petroleum Exporting Countries kept estimates for world supply and demand in 2016 unchanged in its monthly market report. Disruptions in Nigeria reduced the group's output to 32.36 MMbopd last month, a little below the 32.6 million average required to satisfy estimated demand in the second half.
"The expected improvement in global economic conditions should result in a more balanced oil market toward the end of the year," the organization's Vienna-based research department said in a report. "The excess supply in the market is likely to ease over the coming quarters."
Oil has surged about 80% from a 12-year low in February as the global glut is trimmed by unexpected disruptions and a slide in U.S. output. OPEC didn't set any output targets when its 13 members met on June 2 as the organization sticks with Saudi Arabia's strategy of pumping without limits to squeeze rival producers.
Output from the 13 nations slipped by 99,800 bopd last month as militant attacks curbed supplies from Nigeria. Membership will swell to 14 countries in July with the re-admission of Gabon, which pumps about 200,000 bopd.