OPEC: The oil market is fragile but still stable.
According to Platts Energy News New Delhi on October 16th, OPEC Secretary-General Mohamed Bagindo said on Tuesday that OPEC believes that although the oil market is fragile, the supply is sufficient and stable.
At the Indian Energy Forum CERAWeek in New Delhi, Bagindo said that despite the increasing uncertainty of market fundamentals (including supply and demand and economy), the OPEC/Non-OPEC Joint Ministerial Monitoring Committee has urged member states to use idle capacity to cooperate with customers. To meet their needs in the remaining months of 2018.
Bagindo said in the meeting: "Because of the low investment in exploration, the global idle capacity is decreasing."
Oil prices have been on the rise due to concerns that global idle capacity, mainly in the hands of countries such as Saudi Arabia, the United Arab Emirates and Kuwait, is insufficient to offset supply disruptions in Libya and Venezuela.
Bagindo said: "The oil market is stable and the supply is sufficient, but because of factors beyond our control, stability seems fragile. I will urge buyers to remain calm."
Bagindo said that any non-essential factors beyond the control of individual stakeholders are affecting the market, including geopolitical events, natural disasters, technological breakthroughs and other uncertainties that affect financial markets and continue to expand their impact.
He added: "This has been particularly evident in recent months." Global economic growth has led OPEC to cut its forecast for world oil demand growth in 2018 and 2019.
Bagindo said that world oil demand is expected to increase by 1.36 million barrels per day in 2019, to an average of 10,015 million barrels per day, down 50,000 barrels per day from previous forecasts.
When asked about the OPEC/non-OPEC supply agreement, he said: "We are working hard to achieve 100% compliance."
Bagindo said that global primary energy demand is expected to increase by 33% between 2015 and 2040, equivalent to 91 million barrels per day of oil equivalent, of which 24% will come from India.
In addition, he said that world oil demand is expected to increase from 97.2 million barrels per day in 2017 to 111 million barrels per day in 2040, an increase of 14.5 million barrels per day, of which India will account for 5.8 million barrels per day, accounting for total growth. 40%.
“Therefore, the conclusion of the world oil outlook is that India is expected to have the largest additional oil demand, accounting for 3.7% per year and the fastest growth by 2040,” said Bagindo.
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