Growth is the key driver of Oil demand

Under all scenarios, the health of the global economy will remain central to oil prices. These words summarize what the OPEC wrote in the 2014 edition of its annual World Oil Outlook. Despite fragility in the pace of global economic growth, the global economy is generally seen continuing its gradual recovery, the report said. Asia and other developing countries will represent the main part of the oil demand that is expected to increase by over 21 million barrels per day, reaching a total demand of 111.1 mb/d by 2040. In the meantime, OECD’s demand will decrease by approx. 7 mb/d. On the supply side, although the OPEC is likely to meet most of the additional demand, non-OPEC supply will continue to grow in the medium-term and renewable energy’s at a faster pace. Well aware of the challenges and uncertainties like climate change and new technologies, the OPEC is confident that fossil fuels will remain the principal energy source in the next three decades.