The Organization of the Petroleum Exporting Countries (Opec) voiced confidence that excess supply in the oil market will ease as demand picks up and supply growth slows from producers outside the group, an indication its strategy of letting prices fall, reaffirmed at a meeting last week, is working.
In a monthly report, Opec pointed to its expectations that supply from rival producers would decline in the second half of the year after rising in the first. World oil demand will grow faster than it did in 2014, Opec said.
“The current oversupply in the market is likely to ease over the coming quarters,” Opec’s in-house economists said in the report.
