Posted on 10 Feb 2015
OPEC sharply raised a forecast of
demand for its own oil in 2015, saying the halving in prices
since June would slow production in the United States and other
countries faster than previously thought. In a monthly report issued on Monday, the Organization of
the Petroleum Exporting Countries (OPEC) forecast demand for the
group's oil will average 29.21 million barrels per day (bpd) in
2015, up 430,000 bpd from its previous figure. OPEC slashed its forecast for the rate of growth in non-OPEC
supply by 420,000 bpd from last month's report to 850,000 bpd,
partly due to a slowdown in the U.S. shale boom and lower
capital investments by energy firms, arguing lower prices will
also boost consumption. "(Lower non-OPEC supply is) mainly due to announced capital
expenditures cuts for 2015 on the part of international oil
companies, as well as a decline in the number of active drilling
rigs in the U.S. and Canada," it said. OPEC lowered its forecast of total U.S. oil supply in 2015
by 170,000 bpd, having already lowered it by 100,000 bpd last
month. It also lowered its forecast for output in Russia by
70,000 bpd from last month and by a similar amount for Middle
Eastern countries outside the group.
