The OPEC would like the believe that the sudden 30% rise in three days in the price of crude oil -- though the price has dropped 7% subsequently -- are the first signs of a revival in global oil prices.
8The oil producers association has always maintained the view that demand will eventually outstrip supply and oil prices will settle at much higher levels than at present.
8OPEC had continued to pump crude oil into the market instead of regulating supply with the hope of getting the better of the shale oil producers in the US and it may finally be succeeding in its strategy.
8An OEPC paper claims that lower prices will help push demand up. Three of the industry’s main authoritative institutions OPEC, the International Energy Agency (IEA) in Paris and the Energy Information Administration (EIA) of the United States, all forecast oil demand improving going into next year.
8Their forecasts show that this will occur on the back of an expected increase in global economic growth, which, in turn, should also help crude prices to strengthen.
8Countries like India whose gross domestic product is expected to grow at over 7% is a big respite for oil producing countries.
8OPEC figures show that world oil demand this year is now expected to rise by 1.38 million barrels/day from its 2014 level to 92.70m b/d, while in 2016 it is expected to add another 1.34m b/d to growth.
8The other view point held by OPEC is that the fall in price will starve the E&P business of investments and this will hamper capacity additions.
8With the long lead times associated with bringing new oil to market, the lapse in spending, will eventually show up on the supply front even as demand continues to rise
8All of these factors will ultimately increase the price of crude, OPEC feels
For more details visit indianpetroplus.com
8The oil producers association has always maintained the view that demand will eventually outstrip supply and oil prices will settle at much higher levels than at present.
8OPEC had continued to pump crude oil into the market instead of regulating supply with the hope of getting the better of the shale oil producers in the US and it may finally be succeeding in its strategy.
8An OEPC paper claims that lower prices will help push demand up. Three of the industry’s main authoritative institutions OPEC, the International Energy Agency (IEA) in Paris and the Energy Information Administration (EIA) of the United States, all forecast oil demand improving going into next year.
8Their forecasts show that this will occur on the back of an expected increase in global economic growth, which, in turn, should also help crude prices to strengthen.
8Countries like India whose gross domestic product is expected to grow at over 7% is a big respite for oil producing countries.
8OPEC figures show that world oil demand this year is now expected to rise by 1.38 million barrels/day from its 2014 level to 92.70m b/d, while in 2016 it is expected to add another 1.34m b/d to growth.
8The other view point held by OPEC is that the fall in price will starve the E&P business of investments and this will hamper capacity additions.
8With the long lead times associated with bringing new oil to market, the lapse in spending, will eventually show up on the supply front even as demand continues to rise
8All of these factors will ultimately increase the price of crude, OPEC feels
For more details visit indianpetroplus.com
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