The OPEC Reference Basket rose by $4.98 in October, to average $47.87/b.

ICE Brent and NYMEX WTI also surged, up by $4.15 and $4.71, to average $51.39/b and $49.94/b, respectively, according to OPEC Monthly Oil Market Report (MOMR) for November 2016.

''Prices were lifted by declining US oil inventory levels and discussions to bring forward market rebalancing. However, prices came under pressure from a rise in US oil rig counts, a stronger US dollar, and profit taking. The ICE Brent-NYMEX WTI spread narrowed to $1.45/b, encouraging US imports of Brent-related grades, the report said.

World oil demand growth is expected to increase by 1.23 mb/d in 2016 to average 94.40 mb/d. This follows a marginal downward adjustment to account for the slower-than expected performance of Latin America and the Middle East, which was almost entirely offset by better-than-expected oil demand growth data from OECD Europe and Asia Pacific. In 2017, world oil demand growth is seen at 1.15 mb/d, unchanged from the October MOMR to average 95.55 mb/d.

As for world oil supply, the report stated that non-OPEC oil supply in 2016 is now expected to contract by 0.78 mb/d, following a downward revision of around 0.1 mb/d from the October MOMR, to average 56.20 mb/d. In 2017, non-OPEC supply growth was revised down slightly by 10 tb/d to 0.23 mb/d,averaging 56.43 mb/d. OPEC NGLs are expected to average 6.43 mb/d in 2017, an increase of 0.15 mb/d over the current year. OPEC crude production, according to secondary sources, increased by 0.24 mb/d in October to average 33.64 mb/d.

''Demand for OPEC crude in 2016 is estimated to stand at 31.9 mb/d, a gain of 1.9 mb/d over last year. In 2017, demand for OPEC crude is forecast at 32.7 mb/d, an increase of 0.8 mb/d over the current year, the report said.