Colver Technologies: OPEC sticks to existing forecasts; unlikely to cut production despite persistence of low prices.
Online PR News – 22-November-2015 – Liaoning, China – According to Colver Technologies, the Organization of Petroleum Exporting Countries (OPEC) has essentially left its forecasts for oil demand growth and supply unchanged in its November report.
In its report, the 12-country producer cartel maintained its forecast for global oil demand growth in 2015, forecasting it will increase by 1.5 million barrels per day to average 92.86 million barrels per day, unchanged from October’s prediction.
According to the group, 2016’s global oil demand growth is expected to reach 1.25 million barrels per day.
“This is their last report before the highly-anticipated December 4 meeting in Vienna and, like the last meeting, we certainly don’t see any sign of a deviation in their strategy of keeping production high at 30 million barrels a day regardless of the glut it’s causing,” said Gus Stuyvesant, Chief Operating Officer at Colver Technologies.
Oil prices have plunged from around $114 in June 2014 to current levels under $50 a barrel as a direct consequence of oversupply but the group remains committed to preserving market share at the expense of price level.
Earlier this week, the group’s secretary general, Abdalla El Badri, indicated that OPEC, which is led by Saudi Arabia, would not cut its output because it expected oil prices to recover in 2016 despite the production level.
"Colver Technologies isn’t sure what it is that OPEC can see on the horizon that leaves it convinced prices will recover but, if we had to speculate, the only thing that could drive the nominal price of oil higher would be a weakening in the US dollar," said Stuyvesant.
About Colver Technologies
Colver Technologies’ modular GTL systems revolve around the Fischer-Tropsch reactor, a conversion technology developed in the 1920s by Franz Fischer and Hans Tropsche in Germany in 1925. It facilitates the production of significantly cleaner-burning liquid fuels like diesel and jet fuel from natural gas that contains no sulfur. We are committed to doing our part to drive uptake of GTL fuels as global efforts to reduce emissions increase and have invested heavily to ensure the continuing development of this highly attractive alternative to conventional energy production.