OPEC to invest in boosting crude supply

PTI Updated - March 12, 2018 at 01:44 PM.

OPEC, a grouping of 12 countries that controls 80 per cent of the world’s oil reserves, has said its members will invest in boosting crude supply to meet the rising consumption despite the European financial crisis and slowing global economy.

In its World Oil Outlook, the Organisation of Petroleum Exporting Countries (OPEC) said it increased its estimate of supplies in 2011.

World oil demand is expected to rise to 92.9 million barrels per day (bpd) by 2015, up 1.9 million bpd from last year’s forecast, according to the report.

Actual oil demand averaged 86.8 million bpd in 2010.

However, the report cited an array of challenges for the global economy, such as waning monetary stimulus, the euro zone debt crisis and signs that the emerging countries which are expected to drive oil demand are not immune to worsening economic conditions.

“All this has led to heightened downside risks for the world economy,” OPEC Secretary General, Abdullah Al Badri, said in the report.

OPEC is typically more conservative on oil demand than other forecasters such as the International Energy Agency.

Its report looks out to 2035, when it expects world oil demand to reach almost 110 million bpd. Last year’s report foresaw demand of 106 million bpd by 2030.

Meanwhile, oil prices moved down to almost $95 per barrel in Asia on Thursday amid fears that the European debt crisis could spread, hitting demand.

Published on November 10, 2011 07:54