The recent gains recorded by global oil prices have slipped
as the commodity has lost more than $2 in seven days.
Early yesterday, Brent crude, the international benchmark
dropped to $61 from the $64 recorded on November 7.
US West Texas Intermediate (WTI) traded at $55.18, at
against its trading price of $57.30 on November 7.
In a report released two days ago, the International Energy
Agency (IEA) had projected that the US will be the world’s leading producer of
oil and gas by 2025.
IEA reduced its oil demand growth forecast by 100,000
barrels per day (bpd) for 2017 and forecast 1.3 million bpd oil demand for
2018.
“The oil market faces a difficult challenge in 1Q18 with
supply expected to exceed demand by 600,000 bpd followed by another, smaller,
surplus of 200,000 bpd in 2018.”
While speaking at the Abu Dhabi International Petroleum
Exhibition Conference (ADIPEC), the Secretary-General, Organisation of
Petroleum Exporting Countries (OPEC),
Mohammed Barkindo said countries did not have to worry about oil
reaching its peak demand until 2040.
Barkindo had said an increase in global population might
result in more people living without access to electricity, cooking gas or
heating and thus require more oil.
In its monthly report, OPEC had reviewed its oil demand
forecast saying oil demand will increase by 360,000bpd to stand at 33.42
million barrels per day.
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