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 Ali al-Omair told Reuters the Organization of the Petroleum
Exporting Countries would stick to its output policy, which has
focused on building market share at the expense of higher cost
non-OPEC producers.
"There are indications that a lot of high-cost oil production is
starting to get out of the market and this will help improve
prices," Omair said.
The comments followed data from Baker Hughes showing the number of
U.S. rigs drilling for oil fell for a sixth consecutive week.
"Bullish rhetoric from OPEC is helping drive prices higher," said
Tamas Varga, market analyst at London brokerage PVM Oil Associates.
"Rig count data is also supporting sentiment."
Benchmark Brent crude was up 20 cents a barrel at $52.85 by
1125 GMT. U.S. light crude was up 15 cents at $49.78.
Brent fell to a six-year low just above $42 a barrel in August, down
from a peak above $115 in June 2014.
Since hitting an all-time high of 1,609 a year ago, the number of
U.S. rigs operating has fallen by an average of 20 a week as higher
cost drillers curb costs due to low prices.
"The current rig count is pointing to U.S. production declining
sequentially between 2Q15 and 4Q15 by 255,000 barrels per day,"
Goldman Sachs said in response to the data.
The bank said, however, that "a rapid drawdown of the observed
backlog of uncompleted wells could lead to higher production later
this year and in 2016".
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OPEC forecast on Monday that demand for its oil in 2016 would be
much higher than previously thought as its strategy of letting
prices fall hits U.S. shale oil supplies.
In its monthly report, the Organization of the Petroleum Exporting
Countries forecast the world would need 30.82 million barrels per
day (bpd) from the group next year, up 510,000 bpd from its previous
projection. [OPEC/M]
This should reduce the excess supply in the market and lead to
higher demand for OPEC crude," OPEC said in the report, "resulting
in more balanced oil market fundamentals."
(Additional reporting by Henning Gloystein in Singapore; editing by
David Clarke and William Hardy)
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