CERAWeek: OPEC Secretary General Sees Very Strong Petroleum Demand, EIA Not So Much

March 6, 2018

 

After dinner at CERAWeek in Houston Monday night, Bloomberg reporter Jessica Summers says she was told by OPEC’s secretary general that he has confidence that demand for petroleum products is very strong.

So much for worry about peak demand, at least for now.

Mohammed Barkindo said that’s why he’s not worried about US production growth, which is expected, as a number of people at the conference have said, to grow considerably this year.

The EIA’s monthly Short Term Energy Outlook, released Monday, said overall output in 2017 will average 10.7 million barrels per day.

That’s considerably more than the 1970 record of 9.6 million barrels per day.

But then there’s the estimate Tuesday from the US Energy Information Administration, which forecasts slower demand.

While global production is expected to rise considerably in 2018 and 2019, demand will drop, the EIA said.