Oil cartel cuts 2016 non-OPEC oil supply estimate

The world will be slightly more dependent on the Organisation for Petroleum Exporting Countries for its supplies of crude oil next year, the cartel of producer countries said on Monday.

In its monthly Oil Market Report OPEC said daily crude supplies from outside its own members would increase by 160,000 barrels in 2016 to reach a daily rate of 57.6m.

That is considerably more than the 500,000 a barrel a day drop projected just last Friday by the International Energy Agency, the rich world’s oil watchdog.

“There are signs that US production has started to respond to reduced investment and activity,” OPEC’s Vienna-based Secretariat said in the report.

“Indeed, all eyes are on how quickly U.S. production falls.”

As of 12:24 front month Brent crude futures were retreating by 0.99% to hit $47.67 per barrel on the ICE.