The International Energy Agency stated yesterday that it is expected that the world’s oil producers will on average produce an additional million barrels per day during the second quarter of this year. It is also estimated that it will be Asia and China who will increase their production the most significantly.
Demand is now beginning to increase as many countries are tentatively looking out over the recession to a slow return to sustained growth. Consequently as demand increases so too will production but many fear this is a fine balance and if demand becomes too plentiful again we could see another slump in oil prices.
However it is expected that China’s output will increase by approximately 7.2% during the remainder of this year. There is also higher output predicted from China, Russia and some of Eastern Europe and many analysts predict that this increased output will counteract a decrease in output from the Organization of Economic Co-operation and Development.
In Europe demand for oil is believed to have reached its height and at present demand is at its lowest rate for 17 years. Most now agree that oil supply markets are definitely altering and it will be China and India who will pick up the slack from the supply lost in Europe.Andrew Reid, Staff Writer, Gulf Jobs Market News