The slowdown of the world economy and the policies for limiting emissions in developed countries are the main reasons that led the Organization of the Petroleum Exporting Countries to revise the growth forecasts for crude oil demand by 2040. In fact, from The annual World Oil Outlook 2019 shows that global crude oil demand is expected to grow by about 12 million barrels per day over the long term, from 98,7 million barrels per day in 2018 to 110,6 in 2040, but this forecast is been revised downwards to more than 1 million barrels per day from last year's report.
OPEC and its allies will discuss whether to maintain current production cuts of 1,2 million barrels per day or change the size of the cuts at a meeting on December 5th.
Meanwhile, the price of crude oil has reacted upwards driven by the Aramco IPO and by the optimistic conviction of investors on market dynamics: Brent marks +1% to 62,76 dollars while WTI rises by 0,7% to 56,96 dollars . On a positive morning in Piazza Affari, even the main oil stocks are all in positive territory: Saipem a +2,22%, Eni at +1,75%, Gas Plus +1,38%, the three best. The FTSE Italia Oil and Natural Gas Index is at +1,31.
The Organization of the Petroleum Exporting Countries, revised its medium- and long-term growth forecasts, highlighted a continued slowdown in its oil supplies over the next five years, suggesting that the 'OPEC Plus' agreement may have to continue to cut the production to stabilize prices amid a larger-than-expected US manufacturing boom and weak oil demand: “US tight oil again beat expectations,” reads the report, which details how the cut in The cartel's offer is linked to a faster-than-expected increase in new US oil produced through the hydraulic billing extraction technique.
According to data published within the OPEC analysis, OPEC's production of crude oil and other liquids is expected to fall to 32,8 million barrels per day by 2024, from 2019 million barrels in 35. per day. As for supplies, the annual oil market outlook indicates that OPEC supply will decrease by another 1,6 million barrels per day by 2025, while in the previous report OPEC had forecast that its production would increase by 500.000 barrels per day during the period.
As for electric cars, while still a very small share of the global fleet, OPEC says they are "gaining momentum". They are projected to account for almost half of all new passenger cars in OECD countries by 2040, nearly a quarter of that of China and more than 26% globally.
