The Organization of Petroleum Exporting Countries (OPEC) released its February Oil Market Report Monday morning, and the cartel said that demand will rise by 1.17 million barrels a day in 2015, reflecting higher demand in the developed nations of the west. Lower prices are driving up demand, which OPEC says will grow by 180,000 barrels a day in the United States.
The forecast pushed crude prices higher in Monday morning trading, with West Texas Intermediate (WTI) for March delivery up about 2.5% at around $53 a barrel and Brent up about 0.7% at around $58 a barrel.
OPEC now estimates world demand in 2015 to reach 92.32 million barrels a day, up 1.17 million barrels a day over the expected total demand of 91.15 million barrels a day in 2014. The cartel’s current supply forecast calls for non-OPEC supply to total 57.09 million barrels a day in 2015, up from 56.23 million barrels a day on average in 2014.
World demand for OPEC crude is set to rise to an average of 29.21 million barrels a day in 2015, up from 29.09 million barrels a day in 2014.
The cartel does not forecast its own supply, choosing instead to cite unnamed secondary sources for estimates of demand on OPEC. For January these secondary sources put OPEC’s total crude production at 30.15 million barrels a day, nearly a million barrels a day above 2015’s projected demand on OPEC crude.
What Monday’s report highlights is that demand did rise as prices fell. What does not show up yet in the report is the impact that rising demand will have on prices and when the equilibrium point will be reached. OPEC has said it is prepared to ride out the low prices, and it looks like that may have been a good strategy.
ALSO READ: US Drilling Rig Shutdowns Continue
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
