Opec plans to hold informal talks at a conference in Algeria in September after crude prices fell from highs of above $50 a barrel in July.

Mohammad al-Sada, the president of the 14-member group, said higher demand is expected in the third and fourth quarters of 2016 leading to the oil price increasing toward the end of the year.

Representatives from member states will meet on the sidelines of the International Energy Forum in Algiers, which takes place between 26 and 28 September.

“[Recent declines in oil prices are] an outcome resulting from weaker refinery margins, inventory overhang – particularly of product stocks, timing of Brexit and its impact on the financial futures markets, including that of crude oil,” Al-Sada said in a statement on Opec’s website.

“This expectation of higher crude oil demand in the third and fourth quarters of 2016, coupled with decrease in availability is leading the analysts to conclude that the current bear market is only temporary and oil price would increase during later part of 2016,” he added.

Brent crude has fallen from 2016 highs of about $53 a barrel in early July to below $45 at the end of July and the first week of August.

The Wall Street Journal reported on 5 August, citing anonymous sources, that several Opec members including Venezuela, Ecuador and Kuwait are keen to re-open discussions between the oil cartel and non-members such as Russia.

At a meeting in Doha in April, talks ended as Saudi Arabia backed out over Iran’s refusal to enter talks on a widespread production freeze to boost prices.

Al-Sada warned that investment is needed to meet growth in demand and offset the natural decline in production from operating wells. Due to the “unprecedented drop in capital expenditure in oil and gas projects across the globe during 2015 and 2016”, crude supply is expected to decline, he added.