The Organization of the Petroleum Exporting Countries (OPEC) released its monthly report on Monday. OPEC's output declined by 100,000 barrels per day (bpd) to 32.36 million bpd in May, according to the report. The decline was driven by lower output from Nigeria, Venezuela and Iraq.
Supply from non-OPEC members is expected to fall by 740,000 bpd in 2016 compared to the last year, while the U.S. oil output is expected to decline by 420,000 bpd.
Global oil demand is expected to climb by 1.20 million bpd in 2016, unchanged from April, OPEC noted.
OPEC noted that the oil market would rebalance by the end of the year.
"The expected improvement in global economic conditions should result in a more balanced oil market toward the end of the year," OPEC said.