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OPEC report confirms demands for cartel’s oil to drop

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At its Annual World Oil Outlook the Organization of Petroleum Exporting Countries admitted that demand for their oil could reduce by 1.1 million barrels per day by the year 2018. Shale oil, known within the industry as tight oil, is being extracted in huge quantities in North America and this is undermining OPEC’s conventional oil supplies. OPEC says it’s seeking ways to diversify its resources.

Despite the threat from shale oil and gas, OPEC says demand for its conventional oil supplies will remain strong in the long term. The group of 12 countries hold 80% of the world’s conventional oil reserves and OPEC says it expects prices to stabilise at around 100 dollars a barrel.

OPEC has also made it clear that it supports lifting of an embargo on Iran’s oil exports.

The US and EU have imposed sanctions against Iran due to what they say are concerns about the country’s nuclear energy program.

The data presented by OPEC may help members to get a better understanding of the production quota needed. Members are set to discuss the matter further when they meet here in Vienna on the 4th of December.

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