New OPEC forecasts the medium term show rising demand for its oil 9/17/2015
New OPEC forecasts the medium term show rising demand for its oil
9/17/2015 0 Comments
Follow-up - the balance of News - Delegates said the Organization of Petroleum Exporting Countries (OPEC) said the new expectations of the organization in the medium term indicate an increase in demand for its oil in a sign that its strategy to let prices fall inhibit competitors producers supply. And it will publish new projections in OPEC report on world oil prospects later this year is expected to be discussed on Thursday, the second day of the representatives of the Member States meeting at the organization's headquarters in Vienna. The OPEC delegate said "the new numbers show the medium term increase in demand for OPEC crude," he said, adding that "it is assumed that the prices fall than had been anticipated before.
"There is the reality of the impact of the high cost producers."
And predicted OPEC in the report of the global prospects for oil in 2014 that "the declining demand for its oil to 28.5 million barrels per day in 2016 from 30 million barrels per day in 2014 assumed the attainment oil prices toward $ 110 a barrel until 2020, more than double the current level."
It is still possible to modify the figures for 2015, after the representatives of the Member States submit their statements by technical experts and they do not put the production of the organization's policy.
The new forecast was prepared for OPEC after the historic change in the strategy, which was approved in November in November 2014 and includes not reduce production to support prices in order to protect its market share in the face of shale oil producers in the United States and other sources of higher cost of supplies.
And calls for Venezuela to cut production to support prices and its president Nicolas Maduro said he would soon tour to rally support for his call for a summit between OPEC and other producers.
But the new expectations of increased demand for OPEC oil will support it seems the point of GCC members in the organization's view that falling prices for the period will reduce the supply of competitors, leading to higher demand for OPEC oil in the long term.
It is due to "the complexity of the next OPEC ministerial meeting on the fourth of December in Vienna to determine the organization's policy" .