• 5 minutes Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 10 minutes Iranian Sanctions - What Are The Facts?
  • 15 minutes U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 3 hours Can the World Survive without Saudi Oil?
  • 56 mins Sears files Chapter 11
  • 1 hour Natural disasters and US deficit
  • 19 hours U.S. - Saudi Arabia: President Trump Says Saudi Arabia's King Wouldn't Survive "Two Weeks" Without U.S. Backing
  • 3 hours China Is the Climate-Change Battleground
  • 18 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 2 days COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 1 day How Long Until We Have Working Nuclear Fusion Reactor?
  • 2 days $70 More Likely Than $100 - YeeeeeeHaaaaa
  • 11 hours Threat: Iran warns U.S, Israel to expect a 'devastating' revenge
  • 16 hours German Voters Set to Punish Merkel’s Conservative Bloc
  • 17 hours Saudi A Threatens to Block UN Climate Report
  • 2 days China Tariff Threatens U.S. LNG Boom
Alt Text

EIA Inventory Count Accelerates Oil Price Slide

Oil prices continued to slide…

Alt Text

IEA: Plastics Will Replace Fuels As Key Oil Demand Driver

The International Energy Agency said…

Alt Text

Is The Threat Of High Oil Prices Overstated?

Saudi Arabia claims spare oil…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

OPEC: IMO Rules Will Boost Oil Demand By 400,000 Bpd

Petchem plant

The entry into effect of tighter emission rules for bunkering fuel will cause a temporary spike in crude oil demand as refineries increase their daily runs by around 400,000 bpd, OPEC said in its latest World Oil Outlook. This will reverse a global demand growth decline seen this year and in 2019, the cartel said.

This year, demand growth is estimated at 1.6 million bpd, which will slow down to 1.4 million bpd in 2019 but then rebound to 1.7 million bpd in 2020 after the introduction of the new rules that will cap the sulfur content of bunker fuel at 0.5 percent from the current 3.5 percent. This will dampen demand for high-sulfur fuels, but it will increase demand for middle distillates and low-sulfur diesel and fuel oil.

The effect of this change on global oil demand, however, will be temporary. Over the longer term, until 2040, oil demand will add 14.5 million bpd to 111.7 million bpd and the only contributors to this trend will be emerging economies. Demand in OECD members will decline by 8.7 percent in the period 2017-2040, while demand in Eurasia will inch up by just 1 percent. In emerging economies, however, demand is seen to expand by 22.2 percent thanks to stronger economic growth and the expansion of the middle class.

On the supply side, OPEC expects non-cartel producers to boost supply to a peak of 66.7 million bpd in 2025 as U.S. shale oil production peaks, too. After this, a decline will begin, with non-OPEC supply in 2040 at 62.6 million bpd, compared with an estimated 59.6 million bpd this year.

OPEC supply, on the other hand, will continue to grow steadily. This year, it is estimated at 38.8 million bpd, which is set to rise to 49.3 million bpd in 2040. There will be a slight dip in demand when U.S. shale oil reaches its peak, but afterwards, as non-OPEC supply begins to decline, demand for the cartel’s oil will rebound.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News