Despite all the economic problems, and the expectation of reduction in demand for oil from China in the coming three months on the oil market gap can be formed, according to the report of OPEC.
OPEC noted that in the third quarter has traditionally seen a spike in demand for fuel due to increased consumption of aviation fuel, gasoline and electricity for cooling.
It is expected that in comparison with II quarter of this year demand will increase by 1.9 million barrels a day and will reach the level of 95.15 million barrels.
Although OPEC has increased production to its highest level since the beginning of the crisis in 2008, these amounts still not enough to meet the growing demand and with the increase in production was achieved almost the only country – Saudi Arabia.
In the market is still a deficit of fuel, and for the first time since 2013
Statements of OPEC were the driver of growth in oil prices on Tuesday, when prices rose by about 5%, but it should be noted that the forecasts of OPEC are not always accurate, plus they do not take into account potential production growth in countries outside the cartel.
As for the forecast for the next year, then, OPEC believes world oil demand in 2017 will grow to 1.15 million barrels per day in the cartel believe that Norway, Azerbaijan, Kazakhstan, Vietnam, Mexico, Colombia, USA and Russia its prey declined.
However, Russia is expected to fall by only 40 thousand barrels per day, which, in principle, can be considered as statistical error.
The United States still maintained a negative trend, but the number of active drilling rigs has been growing for several weeks in a row and could soon result in production growth.
No one knows exactly what the price of oil shale is satisfied with the company, but most experts believe that it is a level close to $50 per barrel.
The share of OPEC in the market peaked in 1975
OPEC seized the largest share of the oil market since 1975, which can be considered as a justification for the strategy of the cartel, which many criticized for inefficiency in the last two years.
But it also creates a vulnerability for the United States and other countries, which are becoming increasingly dependent on oil from the Middle East.
OPEC and its de facto leader – Saudi Arabia – fought for market share in the past two years. Instead of reducing production to maintain prices, OPEC members have suffered a huge budget deficit, but maintained an extremely high production levels.
This, of course, had a lot of pressure on the cost of crude oil, and many small companies, especially American, just left the market. And this process continues.
Despite the fact that the overall profit of OPEC questioned, given the loss of revenue, the market share of the cartel reached a maximum of more than 40 years.
Riyadh it can be regarded as a victory, but it creates problems elsewhere in the world, which is becoming overly dependent on middle Eastern oil, warned the Executive Director of International energy Agency Fatih Birol.
