CREATIVE COMMONS
In a statement, Energy Minister Mohammed bin Saleh al-Sada - who is also acting president of OPEC, the Organisation of the Petroleum Exporting Countries - said the oil price has "bottomed out" and he sees signs of recovery next year.
He said world GDP growth in 2016 is slated to be 3.4 per cent as against an expected 3.1 per cent in 2015, and that this would result in an increase in global oil demand by 1.3 to 1.5 million barrels per day (bpd).
Growth in supplies from non-OPEC producers over the past five years has substantially reduced in 2015 and is likely to show zero to negative growth in 2016, the statement said.
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"On the other hand, call on OPEC oil is expected to become healthier from 29.3 million bpd in 2015 to 30.5 million bpd in 2016 as indicated by increasing demand from both developed and emerging markets," it said.
Sada added that current low market prices have spurred oil firms to reduce their capital expenditure by almost 20 per cent this year from $650 billion in 2014.
"This trend of reducing investment in the oil industry could result in production shortfalls down the line," the statement said.
Venezuela - which has been trying hard to persuade oil producers to cut output to boost prices - said Thursday a technical meeting of OPEC and other crude-producing countries would take place on October 21.
On Friday, oil edged up in New York and slipped in London as traders booked profits from the week's rally fuelled by hopes for oversupply relief from lower US crude production.
US benchmark West Texas Intermediate (WTI) for delivery in November rose 20 cents to $49.63 a barrel on the New York Mercantile Exchange.
Brent North Sea crude for delivery in November, the global benchmark, fell to $52.65 a barrel in London, a loss of 40 cents from Thursday's settlement.
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