OPEC Report Says Global Oil Output to Remain High in 2015

The collapse in oil prices is starting to slow growth in U.S. output, OPEC said on Thursday, although the slowdown will not prevent an increasing global surplus in 2015 and demand for the exporter group’s oil falling to its lowest in a decade.

In a monthly report, the Organization of the Petroleum Exporting Countries (OPEC) forecast demand for the group’s oil would drop to 28.78 million barrels per day (bpd) in 2015, down 140,000 bpd from its prior estimate and well over 1 million bpd less than it is currently producing.

Oil prices have fallen almost 60 percent since June, partly because OPEC in November decided against cutting output to retain market share against rival suppliers. The rout has put forecasts for the boom in U.S. output in the spotlight.

“The steep drop in global oil prices could endanger the marginal barrel’s output from unconventional sources,” OPEC said in the report, written by its economists at the group’s Vienna headquarters.

“As drilling subsides due to high costs and a potentially sustained low oil price, production could be expected to follow, possibly late in 2015.”

via Reuters

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