The oil market has undergone some substantial changes since the last World Oil
Outlook (WOO) was published in early November 2014. Prices fell from above
$80/barrel then to the mid-40/b range in January. Although they recovered in the
first half of 2015 to around $65/b, further volatility saw prices drop and then
fluctuate in the third quarter. The market instability has led to a number of projects
being deferred or cancelled altogether, rig counts falling dramatically, costs being
squeezed and redundancies being made. And the supply and demand balance in
2015 has been one of oversupply, with stock levels rising to well above the five-year
average. Despite this market instability, OPEC has continued to be an efficient,
reliable and economic supplier of oil