International Energy Agency urges OPEC to guarantee crude oil supply next year

The International Energy Agency announced in its statement issued on October 19 that although the global economy faces many risk factors**, the demand for crude oil will not decline; and the Organization of Petroleum Exporting Countries needs to maintain or even increase the existing supply of crude oil. Meet the needs of the market.

David Ferve, director of the IEA's Marketing and Petroleum Department, said that the market demand related to OPEC crude oil production is currently about 30.1 million barrels per day, and the market demand next year will not be lower than this level at least; therefore, as a supplier OPEC has no reason to cut production.

In response to the IEA's downward adjustment of global crude oil demand expectations for the next two years this year, Ferf pointed out that the expectation was based on the current economic slowdown in the European and American advanced economies. “But this does not mean a double-dip recession. Or the arrival of a new round of economic crisis." He also stressed that, given that Libya's production capacity has not been fully restored, global crude oil supply remains tight.

Analysts pointed out that as the energy branch of the Organization for Economic Co-operation and Development, the IEA's position on OPEC after the outbreak of the global financial crisis has been consistent, that is, it requires it to ensure that the global crude oil market is adequately supplied and to prevent high oil prices from impeding the global economic recovery.

In its latest monthly crude oil market report, the International Energy Agency estimates that global crude oil demand will rise to 90.5 million barrels per day in 2012, of which OPEC’s supply should reach 30.6 million barrels per day.