Global oil demand increases by 2mb/d – Barkindo

An estimated increase of global oil demand growth of close to 2 million barrels a day has been recorded from the first to the second half of this yearm the Secretary General of the Organisation of Petroleum Exporting Countries, (OPEC) Mohammed Sanusi Barkindo has said.

In a speech delivered at the Reuters Global Commodities 2017 Summit, yesterday in London, Barkindo said the OPEC Secretariat in its most recent Monthly Oil Market Report raised projections for oil demand in both 2017 and 2018. These upward demand revisions are most likely to be an ongoing trend.

Speaking on the fall in the demand and oil prices globally, Barkindo told the participants the current cycle has been described by many as the worst they have ever seen in the history of the industry.

“It is a cycle that saw the OPEC Reference Basket fall by an extraordinary 80 per cent between June 2014 and January 2016, the largest percentage fall in the six episodes of sharp price declines we have observed over the past four decades; where thousands upon thousands of jobs were lost; where many projects and investments were frozen or discontinued; and where many companies saw great financial and operational stresses.”

“As we have all learned from previous price cycles, such pronounced and longterm declines in investments are a serious threat to future supply. But given our projected future demand for oil, with our upcoming World Oil Outlook 2017 expecting demand to reach over 111 million barrels a day by 2040, an increase of almost 16 million barrels a day, the world simply cannot afford a supply crunch.”

Recognizing and respecting the link between long-term security of supply and shortterm conditions is critical. “Let me assure you that from the perspective of the ‘Declaration of Cooperation’, all participants remain committed to fully achieving its goals and objectives. We will not waiver; we will not tire.”