• 5 minutes Malaysia's Petronas vs. Sarawak Court Case - Will It End Up In London Courts?
  • 9 minutes Sell out now or hold on?
  • 16 minutes Oil prices going down
  • 2 hours Oil prices going down
  • 19 hours We Need A Lasting Solution To The Lies Told By Big Oil and API
  • 6 hours What If Canada Had Wind and Not Oilsands?
  • 2 hours After Three Decade Macedonia End Dispute With Greece, new name: the Republic of Northern Macedonia
  • 19 hours Another WTH? Example of Cheap Renewables
  • 20 mins Sell out now or hold on?
  • 2 hours Two Koreas Agree To March Together At Asian Games
  • 54 mins Oil and Trade War
  • 19 hours The Wonderful U.S. Oil Trade Deficit with Canada
  • 18 hours The Permian Mystery
  • 12 hours China & India in talks to form anti-OPEC
  • 12 hours No LNG Pipelines? Let the Trucks Roll In
  • 2 hours Geopolitical and Political Risks make their strong comeback to global oil and gas markets
  • 6 hours Australia mulls LNG import
  • 2 days When will oil demand start declining due to EVs?
  • 2 days Russia's Rosneft 'Comfortable' With $70-$80 Oil Ahead of OPEC Talks
Who Gets Hold Of Russia’s Key Oil Hub?

Who Gets Hold Of Russia’s Key Oil Hub?

25 percent of the Novorossiysk…

Why There Won’t Be An OPEC For Battery Metals

Why There Won’t Be An OPEC For Battery Metals

A very dynamic market, quickly…

Oil Demand Won’t Peak Soon: IEA Chief

Oil storage Asia

Crude oil demand won’t peak anytime soon, the head of the International Energy Agency Fatih Birol said, adding that growth will be spurred by emerging economies.

Reuters quoted Birol as saying that, “We do not see in the near and medium terms oil products can be substituted by other fuels. More than one third of growth comes from trucks in developing Asia.”

Birol is not the first industry insider or observer to pin the hopes of the oil industry on emerging nations, and for good reason: while developed economies in Europe are firmly on the path to renewable energy, emerging economies simply cannot afford such a shift in their energy mix so quickly, although efforts to reduce the reliance on fossil fuels are being made there as well.

Birol, speaking at GE’s Oil and Gas Annual Meeting in Italy, also warned that oil markets are in for further volatility because of the lack of new upstream investments, brought about by the 2014 oil price crash. He suggested the current volatility will intensify unless this year some large-scale new oil projects are announced to quench worries about a future deficit of the fuel.

Markets are already excessively volatile, but the main concern right now seems to still be about the global glut that OPEC and 11 non-OPEC producers agreed to address by cutting daily production.

Earlier this month, Birol was quoted as saying that OPEC’s efforts will pay off and prices will stabilize, driving higher production, which will serve to increase volatility by curbing demand. The higher production refers to the U.S. shale patch, where E&Ps are already pumping more. Further, Birol said at the time, China might also start increasing its domestic output as demand is rising and so is the country’s dependence on imported crude.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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