The expected growth in the economies of the African nations would drastically shoot up oil demand by about 2.47 per cent to 3.89 million barrels per day (mbpd), according to the Organization of Petroleum Exporting Countries (OPEC).
The cartel, in its latest edition of its Monthly Oil Market Report, speculated that the continent would experience tremendous growth in oil demand within the first and fourth quarters of 2015.
Besides, the report estimated that OPEC’s January crude production decreased by 53,000mbpd to average 30.15mbpd.
In 2015, it is expected that non-OPEC oil supply would grow by 0.85mbpd, down 0.42mbpd from the previous assessment. OPEC natural gas liquids (NGLs) are forecast to grow by 0.20mbpd to 6.03mbpd in the year.
African oil demand is seen having some upside potential of about 3.02 per cent growth rate from 3.74mbpd in 2014 to 3.84mbpd in first quarter 2015, and 3.89 in fourth quarters.
According to the report, demand for OPEC crude is projected at 29.2mbpd for 2015, representing an increase of 0.1mbpd over the previous year’s level. The first and second quarter of 2015 are expected to decline by 0.9mbpd and 0.2mbpd, respectively, compared to the same period last year.
In contrast, the third and fourth quarter are projected to increase by 0.4mbpd and 1.0mbpd, respectively, over the same period a year earlier.
Global oil demand growth in 2014 is expected to be around 0.96mbpd, broadly unchanged from last month’s report. In 2015, world oil demand is projected to rise by 1.17mbpd slightly higher than in the previous report, mainly to reflect expectations of an uptick in oil requirements in OECD Americas.
The cartel however emphasizes that developments in the global scene needed to be monitored closely, particularly following the sharp drop in crude oil prices seen in recent months.
“As prices drop, oil requirements are likely to respond positively, although this can be impacted by other factors. For example, in 2008, prices fell sharply starting in the summer with the onset of the financial crisis and the global economic recession, which also led to deterioration in demand.
“This time the sharp fall in prices has been mainly driven by excess supply. As a result, lower prices are likely to help to accelerate the pace of oil demand growth this time.
“Other factors can also impact the degree to which any acceleration in demand takes place. In addition to economic growth, the adoption of energy policies and regulations can also influence oil requirements greatly. These factors tend to vary considerably from one economy to another and, as a result, their impact will also differ,” it stated.
Jan 18, 2016 0
May 10, 2015 0
Nov 11, 2017 0The world Black and Arts festival that was hosted in...
May 27, 2015 0Lagos State House of Assembly has invited Josephine Agwu...
Nov 17, 2017 0Tiwa savage is a natural singer with sense of passion to show case the dynamic qualities she possessed, which has earned her accolade and support from numerous fans across Africa and United Kingdom....