OPEC Projects Stronger Oil Demand in 2014
According to an article in “Rigzone” today, OPEC has followed the lead of the U.S. Energy Information Agency (EIA) and projects the demand of crude oil increasing in 2014. Both organizations expect an increase of about 40,000 barrels per day (bopd). While the largest increases in demand still are projected for China and the Middle East, OPEC sees the economies of Europe and the U.S. strengthening more than previously expected.
OPEC output increased in January, mostly due to partial recovery of Libyan production. However this was offset somewhat as Saudi Arabia cut back.
Stronger global demand is not resulting in higher demand for OPEC crude as non-member countries have increased production by 50,000 bopd. This will more than offset the world-wide increase in demand. Consequently, demand for OPEC oil is expected to remain virtually unchanged.
The International Energy Agency is scheduled to issue their forecast later today, and it will be interesting to see if it correlates as closely as those of U.S. EIA and OPEC.
To read the article in its entirety, please go to http://www.rigzone.com/news/oil_gas/a/131584/OPEC .