In early 2014, for example, violence in Libya blocked oil exports, contributing to a rise in oil prices. In the not too distant past, a small supply disruption would send oil prices skyward. Whether that remains true through 2015 is up in the air. ![]() ![]() For now OPEC has stood firm in its insistence not to cut production quotas. Many pundits have declared OPEC irrelevant after their decision to leave output unchanged, the mere fact that oil prices crashed after the cartel’s November meeting demonstrates just how influential they are over price swings. Whether the industry can maintain output given today’s prices or production begins to fall will have an enormous impact on international supplies, and as a result, prices. Rig counts continue to fall, spending is being slashed, but output has so far been stable. That output went a long way to creating a glut of oil which helped to crash oil prices. was producing more than 9 million barrels of oil per day, an 80 percent increase from 2007. ![]() According to the Energy Information Administration, China is expected burn through 3 million more barrels per day in 2020 compared to 2012, accounting for about one-quarter of global demand growth over that timeframe.īy the end of 2014, the U.S. More importantly for oil prices is how much China’s consumption will increase in the coming years. China is the second largest consumer of oil in the world and surpassed the United States as the largest importer of liquid fuels in late 2013.
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