As reported by AZERTAC, the price of a barrel of Brent crude fell by $0.15 to $69.06 on the London ICE (InterContinental Exchange). On the New York NYMEX (New York Mercantile Exchange), the price of Light crude dropped by $0.20 to $66.78 per barrel. The price of Azeri Light crude decreased by $1.53, or 2.02%, to $74.06 per barrel.
It is worth noting that the lowest price of Azeri Light oil was recorded on April 21, 2020, at 15.81 USD, while the highest was in July 2008, at 149.66 USD.
At the same time, price fluctuations at the lower levels are considered temporary in the short term, as oil demand continues to grow at an accelerated pace while investments in exploration lag behind, resulting in a low level of reserve replenishment.
OPEC Secretary General Haitaam Al Ghais stated in an exclusive interview with Energy Connects that by 2050, the world will need investments totaling $18.2 trillion in oil and gas to ensure energy supplies by mid-century.
According to OPEC’s annual report, World Oil Outlook (WOO), published last week, oil demand will continue to grow until 2050, with consumption expected to reach 123 million barrels per day (b/d) compared to 104 million barrels per day this year.
According to OPEC estimates, oil will still account for 30% of the global energy balance by 2050. Al Ghais stated that these estimates are based on facts, not ideology.
The OPEC Secretary General added that the oil industry will require investments of up to $18.2 trillion by 2050.
Due to the slowing growth of demand in China, OPEC has revised its oil demand growth forecasts for the years 2025 to 2029. However, global economic development accompanied by rising oil demand, as well as a growing world population and expanding middle class, will contribute to increased demand in the coming decades.
OPEC reaffirmed its view that no peak in oil demand is expected, and the world will see consumption growth for decades to come.
OPEC's view that there will be no peak in oil demand in the foreseeable future differs from the forecasts of the industry and the International Energy Agency (IEA). Many of the largest oil companies predict demand will stabilize in the next decade, while the IEA has recently strengthened its position that the global peak in oil demand is still not far off.
