According to the recent oil report published by the International Energy Agency, the balance between oil supply and demand is going to start recovering only in 2017. It is interesting to note that this process is definitely going to bring oil prices higher from those ultra-low levels we can currently see.
Still they say, this is not going to be an instant process. The recovery will take some time to implement itself. The experts also underline the importance of taking into account those vast oil reserves collected worldwide by the world’s major oil-exporting nations.
The IEA experts also assume that the average demand for crude oil is going to grow all the way up to 1.2 million barrels a day over the next 5 years. As usual, the demand growth is expected to be led by those Asian nations who are not OECD members. They are expected to raise their daily oil consumption from 23,7 million barrels a day all the way up to 28,9 million barrels a day.
In early February, the experts reported that the oversupply in the global oil market turned out to be much higher than expected. They oversupply is really huge, which is why it is very difficult to consider any price growth in the near-term future.
