Global Times recently reported that OPEC just adjusted its earlier long-term oil market forecast on market demand to show an increase. This is the first time in six years that OPEC has projected an optimistic forecast. The organization also re-estimated China’s automobile market size. OPEC expressed the belief that the world demand for oil will be 108.5 million barrels per day by the year 2035. The organization also estimated that China’s “vehicle parc” will increase by 380 million over the next 22 years. That will be the equivalent of every 1000 people owning 320 vehicles. This rate of increase is based on the same pace that Japan had in the 1990s. The OPEC report also expected that the Indian automobile market would show rapid growth. However the U.S. shale oil and the Canadian oil sands have been rapidly changing the landscape of the oil market, making today’s reality very much different from OPEC’s forecast made two years ago.
Source: Global Times, November 8, 2013