• 5 minutes Oil prices forecast
  • 8 minutes Nuclear Power Can Be Green – But At A Price
  • 11 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 16 minutes Europe Slipping into Recession?
  • 21 mins *Happy Dance* ... U.S. Shale Oil Slowdown
  • 2 hours Emissions from wear of brakes and tyres likely to be higher in supposedly clean vehicles, experts warn
  • 15 hours UK, Stay in EU, Says Tusk
  • 3 hours Socialists want to exorcise the O&G demon by 2030
  • 8 hours How Is Greenland Dealing With Climate Change?
  • 5 hours Is Natural Gas Renewable? I say yes it is.
  • 8 hours Germany: Russia Can Save INF If It Stops Violating The Treaty
  • 3 days Connection Between Climate Rules And German's No-Limit Autobahns? Strange, But It Exists
  • 2 days Maritime Act of 2020 and pending carbon tax effects
  • 4 hours Blame Oil Price or EVs for Car Market Crash? Auto Recession Has Started
  • 33 mins Algorithms Taking Over Oil Fields
  • 14 hours Saudi Private Jet Industry Stalls After Corruption Crackdown
Alt Text

Is WTI Set To Rally?

U.S. crude oil prices struggled…

Alt Text

What Apple’s Tailspin Means For Oil Prices

Global markets have bounced back…

Alt Text

The Overlooked Factor Driving The Rally In Oil

Oil prices are rising again,…

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

Citi: Demand Growth Could Push Oil To $60 By Christmas

Crude oil prices could jump to US$60 a barrel by this year’s end thanks to growing demand and lower OPEC supply, according to Citigroup’s senior energy analyst Eric Lee, as quoted by Barron’s.

Lee believes that global crude oil demand will reach 97.3 million bpd, up from an average of 96 million bpd last year. At the same time, he sees OPEC producing an average of 700,000 bpd less than its average for 2016 throughout the current year.

Authorities such as the IEA and the EIA in the US also forecast a rise in oil demand this year. The IEA believes it will grow by an average 1.3 million bpd, accelerating from the 900,000 bpd in the first quarter. However, the IEA also saw global oil demand at 97.89 million bpd at the end of 2016—a figure that’s half a million barrels higher than Lee’s forecast for 2017 and bound to increase this year. Production, the IEA estimated, was lagging behind demand at 96.69 million bpd in May.

The EIA, in its latest Short-Term Energy Outlook, also forecast a gap between supply and demand that favors higher prices. According to the authority, total global production this year will be 98.3 million bpd, while consumption would be a bit higher, at 98.46 million barrels. Related: Qatar Spat Worsens As Saudi-Led Arab States Vow New Measures

These reports suggest at least partial consensus that global oil demand is growing faster than production – a trend helped by OPEC and its partners, according to Lee, despite growing pessimism about the effectiveness of the deal.

The energy analyst noted, however, that expectations were too high. OPEC and its partners agreed to start cutting production at the beginning of 2017 and in the last two months of 2016 they could boost their production as much as they liked. We recall that OPEC, Russia, and the rest of the participants in the deal took as basis for the cuts the month of October, however, so any further ramp-up in the last two months of 2016 would have only made it harder to comply with the deal, as has been evident in, say, the case of Iraq.

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