OPEC's 2015 Forecast (Revised) | Russell T. Rudy Energy LLC
“Rigzone” reports that OPEC has revised its supply and demand forecasts for 2015. The cartel now projects worldwide demand for oil growing by 1.17 million barrels per day (bpd) to 92.32 million bpd. It attributes increased demand to lower prices. Demand for OPEC production is expected to reach 29.21 million bpd, up 430,000 bpd from its estimate last month.
Non-OPEC supply is expected to rise by 850,000 bpd this year, a downward revision of 420,000 bpd. The biggest reduction is in the U.S. where production was adjusted down by 170,000 bpd. Estimates for Russia and non-OPEC Middle Eastern countries were both revised downward by about 70,000 bpd each. These revisions were based on reduced rig counts and capital budgets for 2015. However, the new forecast is based on the assumption that oil prices will stay low enough in the first half of this year to slow output.
Many member countries have suffered as a result of the price collapse. Hoever, OPEC sees reduced production from non-member countries as validation of its strategy of retaining market share by driving higher cost producers out of the market.
To read the article in its entirety, please go to www.rigzone.com/news/article.asp?hpf=1&a_id=137133&utm .
