Global oil rebalancing ahead of OPEC’s Vienna meeting

 As OPEC’s next general meeting in Vienna approaches in June, global oil demand appears to be catching up with supply, a sign that prices will boost sooner than expected.
Qatar’s Energy Minister Mohammad Al Sada says the market should see a “rebalancing” in the
second half of the yearas cheaper crude hasforced some production to close.
The rate of production shutdowns is accelerating and global demand is increasing, especially for
products such as gasoline, Al Sada said in a statement. “This trend is likely to increase further from next month due to the onset of the summer driving season,” the minister said.
The Organization of Petroleum Exporting Countries will review the current oil market and the outlook for supply and demand at its next meeting on June 2, Al Sada, who is also OPEC president, said in the statement.
OPEC has been without a production target since its last meeting in December.
However, Al Sada did not mention any specific policy proposals in his statement.
“The world oil supply is declining,” Al Sada said.
“Accelerating closures of high-cost production facilities and declining numbers of drilling rigs in operation are among the main reasons for the drop in production around the world.”
Oil has rebounded after slumping to a 12-year low in January on signs the global glut is easing as U.S. output decreases.
Production outside OPEC will drop the most since 1992 as the U.S. shale oil boom falters, the International Energy Agency said in April.