Saudi Arabian Oil Minister Ali al-Naimi believes that the oil supply and demand is in balance and the prices hence should remain in the range of $70 to $80. He further went on to say at OPEC's meeting in Quito, Ecuador that the output targets haven't changed and the price of $90 will be discounted as the storage has supplies and an economic recovery at the global forum will prevent the prices to rise for the time being.
OPEC in its outlook for the future prices of oil further said that the demand for crude will reduce and the supplies comparatively are decent.
There are about 6 million to 7 million barrels a day of spare capacity with OPEC, and roughly half of the world's oil is supplied by it. The global supply for oil has rose by 400,000 barrels a day.
The production rose to 88.1 million barrels a day in the month of November. The increase to the highest level ever is due to the increase in production outside of the OPEC. 1.6 million barrels a day is the rise YOY in the global output for oil.