OPEC estimates its crude oil demand to fall till 2020

By FXStreet FXStreet (Mumbai) – OPEC forecast demand for its crude oil will decline to 2020. Removal of subsidies and implantation of price controls on petroleum products introduced by some governments in the face of low oil prices will likely restrict demand for oil. However, this time around the fall in demand estimated by OPEC is less than what it was previously expected.

In its annual World Oil Outlook, OPEC said that its production will amount to 30.7 million barrels a day by 2020, which is 1.7 million barrels more than projected a year ago. The 30.7 million barrels of daily output from 12 of OPEC’s members in 2020 is about 300,000 a day less than required in 2015. On December 4th, at its meeting in Vienna, the OPEC increased its collective output ceiling to 31.5 million barrels per day (bpd) from the previous 30 million, completely disregarding the oil glut.

OPEC had in November 2014 abandoned its earlier policy of controlling oil price and adopted the market share strategy championed by Saudi Arabia to drive out US shale producers from the market and remain competitive in when pitted against rival producers such as Russia. The strategy has definitely helped the organisation in …read more

Source:: FX Street