Lagos - The international demand for crude oil is expected to shrink considerably next year owing to more shale oil discoveries by the United States.
In its monthly report the Organisation of Petroleum Exporting Countries (OPEC) forecast demand for its oil in 2014 would average 29.61 million barrels per day (bpd), down 250 000 bpd from 2013.
“This would imply a further build in global crude inventories, which currently stand at high levels,” OPEC stated in reference to the market outlook for next year.
The report is a further illustration that technology for extracting oil and gas from shale is reducing dependence on OPEC.
Rising output will make it harder for the 12-member group to keep its own output at high rates without risking a drop in prices below $100 a barrel, its preferred level.
OPEC expects U.S. oil output to rise by 560 000 bpd next year – the biggest rise among non-OPEC countries – to 11.33 million bpd.
Nigeria, the continent's biggest oil producer, has previously raised concern at such discoveries and potential impact on revenue generation.
Crude oil exports generate about 90 percent of government revenue.
- CAJ News