{"id":8921,"date":"2015-06-08T06:09:43","date_gmt":"2015-06-08T11:09:43","guid":{"rendered":"http:\/\/olduvai.ca\/?p=8921"},"modified":"2015-06-08T06:09:43","modified_gmt":"2015-06-08T11:09:43","slug":"global-oil-shortage-before-years-end-surely-not","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=8921","title":{"rendered":"Global Oil Shortage Before Year\u2019s End? Surely Not\u2026"},"content":{"rendered":"<h3><a href=\"http:\/\/oilprice.com\/Energy\/Crude-Oil\/Global-Oil-Shortage-Before-Years-End-Surely-Not.html\" target=\"_blank\">Global Oil Shortage Before Year\u2019s End? Surely Not\u2026<\/a><\/h3>\n<p>Now that OPEC has left its production quota unchanged, the world will continue to see a glut in supplies, right?<\/p>\n<p>Some analysts aren\u2019t so sure. Sanford C. Bernstein predicts that by the end of the year global demand will\u00a0<a href=\"http:\/\/business.financialpost.com\/news\/energy\/oil-deficit-coming-world-may-be-consuming-more-than-it-pumps-by-year-end-analysts-warn?__lsa=a61f-f31a\">outstrip supply<\/a>\u00a0by an estimated 1.5 million barrels per day.<\/p>\n<p>That flies in the face of a lot of separate estimates. The\u00a0<a href=\"https:\/\/www.iea.org\/oilmarketreport\/omrpublic\/currentreport\/\">IEA<\/a>\u00a0says that oil supplies are still in excess of what the world is consuming, by some 2 million barrels per day. Even with flat supplies coming from US shale, drillers are still pumping way more oil than the world is consuming. That leaves Bernstein as an outlier when it comes to guessing which way oil markets are heading.<\/p>\n<p>But there is reason to believe that Bernstein is not off the mark. While market analysts are right to closely watch the trajectory of US production levels as well as what OPEC is up to, a lot less attention is being paid to the demand side of the equation. Part of OPEC\u2019s strategy, we must remember, is to ensure the\u00a0<a href=\"http:\/\/oilprice.com\/Energy\/Energy-General\/Cold-Shoulder-For-Russia-Could-Hint-At-OPEC-Decision-June-5th.html\">world stays hooked on oil<\/a>\u00a0for the long haul. The cartel\u2019s strategy of keeping prices low dovetails with that \u2013 low prices reduce the urgency to transition away from crude oil.<\/p>\n<p><a href=\"http:\/\/oilprice.com\/Energy\/Energy-General\/Price-Manipulation-In-The-Oil-Markets.html\"><strong>Related:\u00a0Price Manipulation In The Oil Markets?<\/strong><\/a><\/p>\n<p>And their strategy is bearing fruit \u2013 demand is growing quickly. The IEA said in its May report that \u201cglobal demand growth gained momentum in recent months.\u201d That is certainly true in the US, where motorists are hitting the roads at levels not seen since before the financial crisis. Seduced by lower prices,\u00a0<a href=\"http:\/\/www.eia.gov\/dnav\/pet\/pet_cons_wpsup_k_w.htm\">gasoline consumption<\/a>\u00a0is at its highest level since 2007, after years of stagnation. Low gas prices are also giving a boost to\u00a0<a href=\"http:\/\/www.wjla.com\/articles\/2015\/03\/plummeting-gas-prices-cause-spike-in-truck-suv-sales-111948.html\">SUV sales<\/a>\u00a0as drivers cast off their energy efficient ways at the first sign of weak prices.<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Global Oil Shortage Before Year\u2019s End? Surely Not\u2026 Now that OPEC has left its production quota unchanged, the world will continue to see a glut in supplies, right? Some analysts aren\u2019t so sure. Sanford C. Bernstein predicts that by the end of the year global demand will\u00a0outstrip supply\u00a0by an estimated 1.5 million barrels per day. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[416,588,6215,589,3102,3620,2292,596,5332,600,701,1474],"class_list":["post-8921","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-iea","tag-oil","tag-oil-cartel","tag-oil-demand","tag-oil-market-share","tag-oil-price-manipulation","tag-oil-shortage","tag-oil-supply","tag-oilprice-com","tag-opec","tag-saudi-arabia","tag-us-oil-production"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8921","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8921"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8921\/revisions"}],"predecessor-version":[{"id":8922,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8921\/revisions\/8922"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8921"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8921"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8921"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}