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    Home > Chemicals Industry > International Chemical > Global average oil consumption is expected to exceed 100 million barrels per day in 2018

    Global average oil consumption is expected to exceed 100 million barrels per day in 2018

    • Last Update: 2022-12-26
    • Source: Internet
    • Author: User
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    According to a new report by Al Rajhi, a leading financial services provider in Saudi Arabia, global average oil consumption was 93.
    6 million b/d in 2014 and is expected to exceed 100 million barrels per day by 2018 and 101.
    8 million barrels by 2019
    .

    The optimal inventory levels needed to meet a surge in demand or unnecessary supply disruptions are likely to be higher
    overall, the report said.

    OPEC is closely monitoring future U.
    S.
    inventory levels, adding that while U.
    S.
    business inventories fell by more than 100 million barrels in 2017, they were still higher than in 2014
    .

    With oil prices on a recovery trajectory, the general consensus seems to be that U.
    S.
    shale production continues to grow to record levels
    .
    Despite rising oil prices, most businesses remain in the red and show no signs of improvement, mainly because capital expenditures and leverage are rising, with an average ROA still at just 0.
    8%.

    And, in the third quarter, average operating costs per barrel remained roughly unchanged without any improvement
    .

    "We feel more united and collective decisions between OPEC members and non-OPEC allies help manage market balances and any potential risks
    ," the report said.

    "Thus, while shale producers are likely to gain more market share in 2018 following the extension of the current production cut agreement in December 2018, OPEC may develop a new strategy (more than just limiting production) to manage oil prices that are optimal enough to keep existing fields productive and rebalance the market," the
    report concluded.

    According to a new report by Al Rajhi, a leading financial services provider in Saudi Arabia, global average oil consumption was 93.
    6 million b/d in 2014 and is expected to exceed 100 million barrels per day by 2018 and 101.
    8 million barrels by 2019
    .

    petroleum

    The optimal inventory levels needed to meet a surge in demand or unnecessary supply disruptions are likely to be higher
    overall, the report said.

    OPEC is closely monitoring future U.
    S.
    inventory levels, adding that while U.
    S.
    business inventories fell by more than 100 million barrels in 2017, they were still higher than in 2014
    .

    With oil prices on a recovery trajectory, the general consensus seems to be that U.
    S.
    shale production continues to grow to record levels
    .
    Despite rising oil prices, most businesses remain in the red and show no signs of improvement, mainly because capital expenditures and leverage are rising, with an average ROA still at just 0.
    8%.

    And, in the third quarter, average operating costs per barrel remained roughly unchanged without any improvement
    .

    "We feel more united and collective decisions between OPEC members and non-OPEC allies help manage market balances and any potential risks
    ," the report said.

    "Thus, while shale producers are likely to gain more market share in 2018 following the extension of the current production cut agreement in December 2018, OPEC may develop a new strategy (more than just limiting production) to manage oil prices that are optimal enough to keep existing fields productive and rebalance the market," the
    report concluded.

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