TODAY.AZ / Business

WB ups oil demand forecast

21 October 2016 [14:54] - TODAY.AZ

By Azernews


By Nigar Abbasova

The World Bank increased its forecast for oil demand in 2016 and 2017 in its new Commodity Markets Outlook, as the financial institute expects OPEC’s output cut agreement to help adjust excess supply.

World oil demand for 2016 is projected to increase by 1.2 million barrels per day (1.3 percent) to an average of 96.3 mbd. In its previous report published in July the World Bank forecasted oil demand to stand at 96.1 million barrels per day. Global demand growth is expected to rise further by 1.2 mb/d (1.3 percent) in 2017.

The forecast for energy prices, which include oil, natural gas and coal, are kept at the average level of $43 per barrel in 2016, while a jump of nearly 25 percent is expected in 2017. The forecast of oil prices for 2017 was increased up to $55 per barrel as compared to the expected index of $53 per barrel.  

Oil demand in the countries of the Organization for Economic Co-operation and Development (OECD) is projected to rise by 0.1 mbd, with increases in Europe offsetting declines elsewhere.

Non-OECD oil demand is projected to rise by 1.1mbd (2.3 percent), led by increases in China and India but at the slowest pace since 2009.

World oil demand expanded by 1.5 mbd (1.6 percent) year-on-year in the first quarter of 2016, but only 1.3 mbd (1.4 percent) in the second one.  The slowdown occurred in both OECD and non-OECD regions. Demand growth is estimated to have slowed further to 0.8 mbd (0.8 percent) in the third quarter, with all of the reduction falling to a share of the OECD.

A global glut of oil supply caused oil prices to crash from as high as $115 per barrel in mid-2014 to below $30 at the beginning of 2016.

OPEC is keen to limit output, in coordination with other major producers such as Russia in its next meeting in Vienna in November.

URL: http://www.today.az/news/business/155323.html

Print version

Views: 1447

Connect with us. Get latest news and updates.

Recommend news to friend

  • Your name:
  • Your e-mail:
  • Friend's name:
  • Friend's e-mail: