«Economic» from Riyadh
Barclays expects a meeting of the Organization of the Petroleum Exporting Countries (OPEC) at its meeting on June 22 to increase production, and other non-OPEC producers participating in the declaration of cooperation will follow suit. According to Reuters, the British Bank added that it expects that the OPEC meeting will not result in a change in the Organization’s forecast for the price of global benchmark crude, Brent crude of $ 70 a barrel this year and $ 65 a barrel next year. “Our basic scenario is that OPEC’s oil supply, excluding Venezuela and Iran, will increase by between 700 and 800,000 bpd from the second quarter to the fourth quarter of 2018,” Barclays said. He said that while the OPEC meeting in June may see differences, it is difficult to imagine a result of the meeting that would put pressure on prices as sharply as in November 2014. The outlook for demand growth is strong. British energy giant BP said global energy demand growth last year rose 2.2 per cent, while the average annual growth rate for the 10 years 1.7 per cent, thanks to strong economic growth in developed countries. “The year 2017 was the year that the structural forces of the energy market continued to drive towards a transition to a less energy-intensive economy,” Bob Dodley, chief executive of BP, said in a presentation of the British Energy Statistical Review of 2018. But cyclical factors have reversed or slowed down some of the gains made in previous years, combined with rising energy demand that led to significant increases in carbon emissions after three years of slight increase or the stability of these emissions, “he said. Oil production grew by 1.8 per cent while output growth was below average for the second year in a row. Production from the Organization of the Petroleum Exporting Countries (OPEC) and 10 other oil producers fell after they agreed to cut production to boost prices by about a year and a half . Consumption was greater than production during much of 2017, leading to a decline in OECD crude stocks to their more normal levels. At the same time, the world’s natural gas production increased 4 percent, while consumption increased 3 percent last year, the fastest growth rate for the sector in the wake of the global financial crisis. China’s strong demand for gas was the biggest factor behind rising world demand. China’s natural gas consumption over the past year has increased by more than 15 percent thanks to government policies that encourage the transformation of the energy sector from coal to gas.