The global oil market is more balanced now than it was in 2011, but the short-term outlook mainly depends on OPEC production decisions, a senior economist for United Kingdom-headquartered oil major BP PLC (BP) said Friday.

"If you set aside concerns about supply and the Iran issue, the oil market looks more balanced now than it was last year," Paul Appleby, BP's head of energy economics, told reporters.

Mr. Appleby said a combination of higher production by Organization of Petroleum Exporting Countries, oil inventory levels getting back to normal and relatively weak consumption growth has weakened the market and caused prices to fall in recent months.

ICE Brent future prices averaged a record of around $111 a barrel last year as supply disruptions, mainly from Libya , raised fears of a tightening oil market.

But the benchmark has come down in recent months, dropping a quarter of its value since mid-March due to worries over global economic growth, while Saudi Arabia increased production.

"There is still plenty of spare capacity, and Saudi Arabia could increase production further if they wanted," Mr. Appleby said.

"But in the short term, it's really all about OPEC's production decisions," he said, noting that some members of the oil cartel have set a price target around $100 a barrel.

"OPEC will try to manage production to keep prices around that level, and they can do that for a while," he said.
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