Global oil supplies abundant as price dips slightly
The price of oil fell yesterday, as an unexpected rate cut by the European Central Bank strengthened the dollar
Benchmark US crude for December delivery fell 60 cents to US$94.20 a barrel on the New York Mercantile Exchange. Brent crude, the international benchmark, fell more sharply, dropping US$1.78, or 1.7 percent, to US$103.46 a barrel on the ICE Futures exchange in London.
OPEC stated it expects demand for its crude oil to fall to 29.2 million barrels a day in 2018 from 30.3 million barrels a year this year. It felt rising supplies from other sources, such as Canadian oil sands, crude from Latin America and the increased use of biofuels would contribute to the fall in demand for its own output by its members.
OPEC then went on to predict that global oil demand would rise from 81.2 million barrels a day in 2013 to 89.7 million barrels a day in 2020 and 100.2 million barrels a day in 2035. At the same time, renewables and other fuels will cut into oil’s share of global energy use, from 32.2 percent in 2010 to 26.3 percent in 2035.