LONDON: OPEC's share of the world market is expected to shrink in 2015 for a third year running due in part to the U.S. shale oil boom, giving the exporter group little comfort from an acceleration in global demand.
Making its first 2015 forecast in a monthly report, the Organization of the Petroleum Exporting Countries said demand for its oil in 2015 would average 29.37 million barrels per day (bpd), down 310,000 bpd from 2014.
The report points to ample supplies next year, especially if there is further progress in resolving outages in a number of OPEC countries, such as Libya, Iraq and Iran, that have curbed supply in 2014 and helped support prices above $100 a barrel.
"Even if next year's world economic growth turns out to be better than expected and crude oil demand outperforms expectations, OPEC will have sufficient supply to provide to the market," the report from OPEC's Vienna headquarters said.
Next year would be the third in a row in which the demand for OPEC crude will decline, OPEC said. Increasing supply outside the group and members' supply of natural gas liquids and non-conventional oil will outstrip the expansion in world demand. (Reuters)