The Organization of Petroleum Exporting Countries cuts its forecast for U.S. oil production for the next year as a sign of falling oil prices' downgrading burden, in its monthly report released on Monday.
"In North America, there are signs that US production has started to respond to reduced investment and activity," the Vienna-based organization said in its Monthly Oil Market Report for August.
OPEC estimated that the U.S. oil supply would reach 13.75 million barrels per day by a 780,000 barrels increase. However, the figures are 170,000 lower than the previous forecast.
Meanwhile, oil-producing countries outside OPEC is expected to pump around 57.4 million barrels per day in 2105 with a rise by 880,000 barrels.
OPEC projected a lower increase in 2016 by 160,000 barrels with a downward revision by 110,000 barrels comparing to the previous report, which means a weaker growth in non-OPEC producers.
The global demand forecast for oil revised up by 84,000 barrels per day, to 1.46 million in 2015 due to the better than expected economic performance in OECD countries and but downsized for 2016 to 1.29 million.
"This could contribute to a reduction in the imbalance of oil market fundamentals," OPEC stated.
Oil prices have more than halved since 2014 hurting the high-cost production companies, as the OPEC members insisted on high production levels in order to keep their market share.
By Furkan Naci Top
Anadolu Agency
furkan.top@aa.com.tr