• 3 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 6 minutes Why is Strait of Hormuz the World's Most Important Oil Artery
  • 8 minutes OPEC is no longer an Apex Predator
  • 12 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 2 hours Australian Voters Reject 'Climate Change' Politicians
  • 6 hours Australia Election Summary: "This was the Climate Change Cult Election, and the Climate Change Cult Lost"
  • 10 hours Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 2 hours Shale to be profitable in 2019!!!
  • 48 mins Global Warming Making The Rich Richer
  • 14 hours China Downplays Chances For Trade Talks While U.S. Plays ‘Little Tricks’
  • 14 hours IMO2020 To scrub or not to scrub
  • 14 hours California Threatens Ban on ICE Cars
  • 18 mins Shell ‘to have commercial wind farms’ by early 2020s
  • 15 hours Did Saudi Arabia pull a "Jussie Smollett" and fake an attack on themselves to justify indiscriminate bombing on Yemen city population ?
  • 15 hours "We cannot be relying on fossil fuels to burn as an energy source at all in our country" - Canadian NDP Political Leader
  • 10 hours Some Good News on Climate Change Maybe
  • 6 hours Misunderstanding between USA and Iran the cause of current stand off, I call BS
  • 6 hours DUG Rockies: Plenty Of Promise, Despite The Politics
Oil Shrugs Off Trade War Threat

Oil Shrugs Off Trade War Threat

Oil markets saw a volatile…

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