Call on OPEC in H2 2016 higher than current OPEC production

Baker Hughes announced on Friday that the US oil rig count had once again fallen by 10 to 652 after having already decreased by 13 in the previous week. 

The marked price fall since the end of July is thus being reflected in declining exploratory activity with a delay of less than two months. Due to the steepest drop in non-OPEC production in 24 years, the IEA believes that the call on OPEC in the second half of 2016 will rise to 32 million barrels per day.

This is more than OPEC is currently producing. According to the IEA, OPEC production totalled 31.6 million barrels per day in August, notes Commerzbank.