The growth in world oil demand in the next five years will be 1.2% per annum – Vedomosti

The growth in world oil demand in the next five years will be 1.2% per annum – Vedomosti

World oil demand in the next five years will be restored after a very weak growth in 2014, but will be slower than the growth in demand before the financial crisis of 2008, according to a report by the International Energy Agency ( IEA).

« The growth in global demand will average 1.2% per year that weaker demand pre-crisis period ( 1,9% in the period from 2001 to 2007) “?? said the IEA report, the five-year forecast of development of the oil market.

According to agency forecasts, in 2020 global demand was 99.1 million barrels of oil per day. In the period from 2014 to 2020, oil demand will increase by 6.6 million barrels of oil per day. The increase in demand by almost 1.5 million barrels higher than the growth of world oil production of 5.2 million barrels.

The IEA expects that in 2015 the demand will be 93.3 million barrels of oil per day. Agency predicts that in 2016 the comparable figure was 94.5 million barrels of oil a day.

The agency also believes that now the market goes lower point oil and raw materials will gradually become more expensive, writes The Wall Street Journal. Price recovery IEA said « inevitable» ( quoted by « Interfax”). Oversupply of oil on the market will begin to decline in the second half of 2015, experts say the agency. The market will gradually recover against the backdrop of slowing growth in oil production in the world. Supply of oil in the world will continue to grow until 2020 at a pace of 860,000 barrels per day, whereas in 2014 the increase was 1.8 million. However, the demand will grow at a slower pace.

In 2016 the average price for a barrel of oil will rise with only $ 60, as the increase in prices will be constrained due to increased production in the United States, according to the IEA.

The fall in oil prices by more than 50% June 2014 restricts the production of oil in the market by a decline in investment by manufacturers.

By 2020, global production capacity was 103.2 million barrels of oil per day. Production in the United States by 2020 will increase by 2.2 million barrels per day, mainly due to the expansion of shale oil. Production in countries outside of OPEC in 2020 will reach 60 million barrels of oil per day, increasing on average every year to 570,000 barrels of oil per day.