• 2 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 2 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 2 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 2 days Schlumberger Warns Of Moderating Investment In North America
  • 2 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 2 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 2 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 2 days New Video Game Targets Oil Infrastructure
  • 2 days Shell Restarts Bonny Light Exports
  • 2 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 3 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 3 days British Utility Companies Brace For Major Reforms
  • 3 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 3 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 3 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 3 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 3 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 3 days Rosneft Signs $400M Deal With Kurdistan
  • 3 days Kinder Morgan Warns About Trans Mountain Delays
  • 4 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 4 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 4 days Russia, Saudis Team Up To Boost Fracking Tech
  • 4 days Conflicting News Spurs Doubt On Aramco IPO
  • 4 days Exxon Starts Production At New Refinery In Texas
  • 4 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 5 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 5 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 5 days China To Take 5% Of Rosneft’s Output In New Deal
  • 5 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 5 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 5 days VW Fails To Secure Critical Commodity For EVs
  • 5 days Enbridge Pipeline Expansion Finally Approved
  • 5 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 5 days OPEC Oil Deal Compliance Falls To 86%
  • 6 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 6 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 6 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 6 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 6 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 6 days Aramco Says No Plans To Shelve IPO
Clashes In Kurdistan Send Oil Prices Higher

Clashes In Kurdistan Send Oil Prices Higher

Reports of skirmishes between Iraqi…

Russia Goes All In On Arctic Oil Development

Russia Goes All In On Arctic Oil Development

Fighting sanctions and low oil…

World Oil Demand On The Rise Says Saudi Oil Minister

World Oil Demand On The Rise Says Saudi Oil Minister

Saudi Arabia’s oil production was up to 10.3 million barrels in March, and an senior Saudi energy official says that will meet an annual global rise in demand of as much as 1 million barrels a day.

In fact, total yearly demand around the world is expected to reach 105 million barrels a day by 2025, Ibrahim al-Muhanna told an energy conference in Riyadh on April 10.

Al-Muhanna, an adviser to Saudi Oil Minister Ali al-Naimi, said the current depression in both oil prices and demand is a “temporary, unnatural situation,” and that in the foreseeable future there will be “continued growth in demand for the various types of energy, including oil.”

Related: Media Spin On Oil Prices Running Out Of Fuel

“At a minimum,” al-Muhanna said, “oil demand is expected to grow annually by up to 1 million barrels per day and world consumption is expected to increase to about 105 million barrels per day in 2025, even when taking into consideration all the energy rationalization policies in countries all over the globe.”

Whether al-Muhanna’s forecast is accurate or not, he may have a point. There was a drop in demand over the past several months in both Asia and Europe, but Asian consumption as begun to rise again, and Saudi Arabia cut prices for its oil destined for the region in March.

This is part of the kingdom’s effort to regain market share lost during the worst of the oil glut, as oil from Africa, Latin America and Russia is also being offered to China, which followed only the United States as the world’s largest consumer of oil last year, according to the International Energy Agency.

Related: Why The Oil Price Collapse Is U.S. Shale’s Fault

Further, Iran has sought to allay fears that its expected full-scale return to the global oil market may worsen the glut and push down prices even further if its tentative nuclear deal with six world powers becomes final. Iranian Oil Minister Bijan Zanganeh told Reuters during a visit to Beijing that Tehran would “coordinate itself” to ensure there will be no further drop in prices.

The forecast by al-Muhanna in a way quantifies points made by al-Naimi himself in Riyadh on April 7, when he disclosed that the kingdom’s output of 10.3 million barrels a day in March, the most since 2002. Al-Naimi said his country will keep producing at a rate of about 10 million barrels a day because he expects oil prices will rise soon. Related: Top 12 Media Myths On Oil Prices

In the meantime, though, al-Naimi said Saudi Arabia and OPEC as a whole will not cut production without the cooperation of those who aren’t members of the cartel. They include the United States, which is expected in 2015 to produce the most crude it has since it did in 1972, and Russia, which he said is producing oil at near-record highs since the breakup of the Soviet Union.

“Prices will improve in the near future,” al-Naimi said. “The challenge is to restore the supply-demand balance and reach price stability. This requires the cooperation of non-OPEC major producers.”

By Andy Tully Of 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