(MENAFN- Qatar News Agency) HE Minister of Energy and Industry Dr. Mohammed bin Saleh Al Sada said Sunday that he expected oil prices to start making gains in 2016, labeling its recent lows as the bottom.
In a statement released today form the Ministry of Energy and Industry, the alternate president of OPEC Conference said that recent forecasts expect world GDP to reach 3.4% in 2016, compared to 3.1% in 2015. This should increase demand for oil by 1.3-1.5 million barrels a day, His Excellency said.
HE the Minister noted that supply of oil from non-OPEC members has seen a big decline, something that is set to continue in 2016. On the other hand, HE Al Sada said he expects that demand for oil from OPEC countries will increase to 29.3-30.5 million barrels in 2016.
His Excellency also highlighted that, as a result of the low oil prices, oil companies decreased their capital spending by about 20%. Spending was at $540 billion in 2014 according to HE the Minister. This reflected a decrease in investment, which should lead to less production in the future.
HE Al Sada said that expert of OPEC member countries and non-members plan to hold a meeting in Vienna later in October to evaluate the oil market.
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