• 4 minutes Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 8 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 11 minutes Why Trump Is Right to Re-Open the Economy
  • 13 minutes Its going to be an oil bloodbath
  • 1 hour US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 2 hours While China was covering up Covid-19 it went on an international buying spree for ventilators and masks. From Jan 7th until the end of February China bought 2.2 Billion masks !
  • 41 mins Ten days ago Trump sent New York Hydroxychloroquine. Being administered to infected. Covid deaths dropped last few days. Fewer on ventilators. Hydroxychloroquine "Cause and Effect" ?
  • 6 hours Marine based energy generation
  • 2 hours China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 4 hours Today 127 new cases in US, 99 in China, 778 in Italy
  • 10 hours Real Death Toll In CCP Virus May Be 12X Official Toll
  • 20 hours What If ‘We’d Adopted A More Conventional Response To This Epidemic?’
  • 1 day Trafigura CEO Weir says, "We will see 30% to 35% drop in demand". That amounts to 35mm bbls/day glut ! OPEC+ 10 mm cut won't fix it. It's a DEMAND problem.
  • 45 mins Apple to Bypass Internet and Beam Directly to Phones
  • 7 hours Which producers will shut in first?
  • 16 hours TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
Alt Text

What Will $15 Oil Mean For Producers?

According to the IEA, if…

Alt Text

Demand Destruction Will Decimate Oil Prices

The long-term ramifications of the…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Is OPEC Losing Its Influence?

The pace of global oil demand growth will be gradually slowing through 2040, OPEC said in its annual report on Tuesday, revising down its medium and long-term demand growth outlook compared to last year’s estimates.  

In its annual World Oil Outlook 2019 report published today, the group also lowered projections about its own liquids supply to 2024, admitting that soaring U.S. shale production and supply from other producers including Brazil, Norway, and Kazakhstan will eat into its market share over the next five years.  

“Signs of stress have appeared in the global economy, and the outlook for global growth, at least in the short- and medium-term, has been revised down repeatedly over the past year,” OPEC said.

Last month, OPEC revised down its global oil demand growth estimate for this year, for a fourth time in five months, expecting demand to grow by just below 1 million bpd amid slowing economic growth momentum in the ongoing trade spats.

Therefore, the cartel is lowering its outlook for global demand to 104.8 million bpd by 2024, and 110.6 million bpd by 2040. Over the next five years, the average demand growth is seen at around 1 million bpd, dropping from an expected 1.1 million bpd this year to 900,000 bpd in 2024. In the long term, to 2040, OPEC sees oil demand growth slowing from 1.4 million bpd in 2018 to some 500,000 bpd towards the end of the next decade.  

OPEC’s liquids supply is forecast at 32.8 million bpd in 2024, down from 36.6 million bpd in 2018 and an estimated 35 million bpd for 2019.

“At the same time, non-OPEC supply prospects have been revised up, as US tight oil, in particular, has again outperformed expectations. Prospects for growth are undimmed, given that efficiency and technology gains, as well as investments, have further increased,” OPEC said. Related: Trump Vows To Protect Syrian Oil Fields From ISIS

The organization sees U.S. production peaking “sometime around 2025.” Supply from the U.S. and Canada is expected to rise by nearly 5 million bpd between 2018 and 2025. The increase will be mostly offset by a nearly 3 million bpd decline in supply from the Middle East, as demand for OPEC crude declines, the cartel said.

In the longer term, however, OPEC expects to regain some market share as it sees only two non-OPEC countries—Brazil and Kazakhstan—showing meaningful output growth beyond the mid-2020s.

“Virtually all other non-OPEC producers are anticipated to see a decline in long-term liquids production,” OPEC said.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage






Leave a comment

Leave a comment




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