In its monthly report, OPEC has assessed the condition of the international oil market and highlighted a decrease in the price of crude caused by oversupply of that commodity. The reduction in oil price is the biggest in the past 6 years and the demand for crude is the lowest since 10 years. According to the 2015 forecast, the demand for oil will fall to 28.78 Mmbbl per day, i.e. more than 1 Mmbbl less than today.
As cire.pl announces, the shale oil is extensively commented in the report. The authors of the report have emphasized that the falling crude prices may undermine shale oil production in the United States due to a high cost of extraction and low oil prices prevailing for a long time. However, an abrupt decrease in shale oil production is not expected to occur before the fall of 2015. According to the report, before that the supply of shale oil in the USA will be on average equal to 13.81 Mmbbl per day, i.e. it will continue to grow albeit at a slower pace of 2.2% (according to the official forecast by the Department of Energy).
The cartel of oil exporters emphasizes that the US shale boom is to blame for oil oversupply. According to OPEC report, the falling international demand for oil is caused by a slowdown in the global economy.
OPEC experts argue that unlike the global economy the US are comfortably on the growth path and domestic demand will gradually offset the oversupply on international markets. However, oil exporter countries are not prepared for taking advantage of the improved situation on the US market, emphasizes cire.pl.
15.01.2015
source: cire.pl
