After 2020, the IEA said, demand growth is expected to grind nearly to a halt, increasing 5% over the next 20 years.
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OPEC’s decision to maintain high output levels despite a global crude supply glut has led prices to plunge by more than 50 percent from peaks of more than US$100 a barrel in mid-2014.
Oil prices were steady on Tuesday after the global Energy Agency noted unprecedented declines in investment, though the overall picture of an oversupplied market limited any gains. “But the current forecast is for a mild winter in Europe and the US If it turns out to be true, bulging stock levels will add further pressure and oil market bears may choose not to hibernate”.
However, the IEA said the appetite for oil “has been outpaced by vigorous production from OPEC and resilient non-OPEC supply”.
The IEA meanwhile predicted on Friday that world oil demand would grow by 1.2 million barrels per day in 2016, after a five-year high of 1.8 mbd this year, as cold weather and rekindled economic growth in a few countries boost consumption. USA crude oil production is project to average 9.3 million barrels p/d in 2015 and 8.8 million barrels b/d in 2016, reported Xinhua.
As China has historically been a major consumer of oil, fluctuations in country’s pace of growth within industrial production and other sectors, stand to influence the price of the hydrocarbon commodity.
Among the products, gasoline supplies fell by 2.1 million barrels, while distillate stockpiles rose 400,000 barrels last week, the EIA said. It will eventually reach 103.5 million barrels per day by the year 2040. “Iraq has loaded around 10 tankers in recent weeks to deliver crude to U.S. ports in November”, ANZ said on Thursday.
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“As the next OPEC meeting on December 4 looms closer, speculation over what the cartel will do next will rise”. Demand growth will ease next year to 1.2 million barrels a day as the stimulus from cheap fuel fades and Chinas economy remains problematic.
