Related Articles
Forward article link
Share PDF with colleagues

A tale of two forecasts

Both the IEA and Opec agree global oil demand will increase in 2017. Supplies are trickier to figure out

While neither the International Energy Agency (IEA) nor Opec proved particularly successful at forecasting oil supply and demand trends in 2016 they agree on two things: economic growth will drive global oil consumption higher in 2017 and the call on Opec is increasing. Now Opec has agreed a deal to curb output by 1.2m barrels a day from January, so if the agencies are right the market will tighten. Both Opec and the IEA expect global economic growth to average around 3% in 2017, roughly in line with the International Monetary Fund (IMF)'s estimate for 2016. That will yield oil-consumption growth of 1.2m b/d, about the same as in 2016. But in absolute terms, their baselines still differ. Th

Also in this section
US tight oil: Too light, too sweet
24 November 2017
International buyers’ appetite may start to wane in 2018
Tight oil: Pumping the brakes
24 November 2017
Output will rise again in 2018, but less drilling and greater capital discipline will slow growth
Carbon permits: The burning issue
23 November 2017
Carbon floor price or free market? Europe's debate shows no signs of calming