for Oil Demand Growth
Despite EV sales growing at a rapid clip in China, oil demand there is still expected to rise by more than 60 percent in the next couple of decades.
Critics of the EIA's long-term projections can cherry-pick through the different scenarios to justify almost any outlook that suits their bias.
A major consultancy says that the oil market will still take longer to rebalance than many analysts had reckoned because of supply-side trends both in OPEC and outside the group. A slew of new non-OPEC fields will ramp up to increase the global crude oversupply to a massive 1.8 mbd for 1H 2017.
An extended period of upstream investment cuts and the fact that petroleum products still fuel more than 90 percent of the transportation sector could mean we’re headed for another price spike. But slower economic growth and structural shifts on the demand side could keep another bull market from occurring.
Regulatory turf wars, disputes over the eligible crudes for physical delivery, and a sharp downturn in trading in a number of markets in the region have delayed the opening of China's crude benchmark.
The oil markets have had a crazy beginning to 2016. Prices have plummeted to the lowest levels in 11 years, and it’s hard to identify anything likely to turn the market around in the near future.
The oil market is shrouded in bearish sentiment at the moment as prices continue to trend downward, with Nymex West Texas Intermediate (WTI) falling from around $61 per barrel in the middle of June to $48. Continued pressure to the downside appears likely—but not inevitable.