US Forecast Oil Price Reduction in 2009 – EIA Department Director
Azerbaijan, Baku / Trend corr. A.Badalova / Oil prices will be reduced during the last quarter of 2008 and in 2009, Doug MacIntyre, the director of the Informative Department on Energy Markets of the Energy Information Administration (EIA) at the United States Energy Ministry, said to CapitalTrend.
"The reduction of prices will be observed especially at the end of 2008," MacIntyre said. Since the beginning of 2008 oil prices increased by 50% reaching a record level $100 per barrel.
The forecast by the United States EIA reports that the world oil demand will rise more rapidly than the delivery of raw material from the countries which have not entered the OPEC member-countries in 2008. This, in turn will lead to OPEC compensating for the increasing pressure on prices. The world oil demand, as compared to the forecasted 1mln barrel per day, will increase by 1.6 mln barrel per day in 2008 and 2009. Such large volumes, as compared to 2007, are particularly as a result of the excessive use of oil by the Economic Cooperation and Development Organization (ECDO) and in Europe, where oil use was restrained due to weather conditions in 2007.
Oil production by OPEC will make up 31.8 mln barrel per day in 2009 against 32.6 mln barrel per day in 2008.
According to MacIntyre, the increase in oil production in countries which do not enter the OPEC member-countries will be enough to reduce oil prices at the second quarter of 2008 and 2009.
Oil production in the countries which do not enter OPEC will be increased by 0.9 mln barrel per day in 2008 and by 1.6 mln barrel per day in 2009. The oil production in Azerbaijan, Russia, Canada, Brazil, the United States, Sudan, China and Kazakhstan will play an important role in the increase of raw material production in the countries which have not entered OPEC.