Global Oil Demand Will Reduce within Two Years

United States Energy Information Administration recently released Forecast Report of Monthly Short-Term Energy. It lowered expected global oil demand to 91.56 million barrels/day this year and 92.96 million barrels/day next year. The agency expected in July that the demand for crude oil would be 91.62 million barrels/day this year and 93.08 million barrels/day next year. Market analysts believe that the weak crude oil demand is putting pressure on oil prices.
 
The report said it was expected that OPEC would cut crude oil production this year, in order to offset the impact brought by production growth of non-OPEC countries. The agency expected that OPEC crude oil production this year would be 35.84 million barrels/day this year, lower than the previous forecast of 35.93 million barrels/day. United States Energy Information Administration data showed that crude oil production of OPEC last year was 36.12 million barrels/day.
 
United States Energy Information Administration said that crude oil production of U.S. was 8.5 million barrels/day, which was the monthly highest since April of 1987. It predicted that the crude oil production of the country would maintain at 8.46 million barrels/day. However, it also raised the average daily oil demand from 18.95 million barrels to 18.98 million.
 
Moreover, United States Energy Information Administration cut its forecast of average price from $109.55/barrel to $108.11/barrel this year and raised the price in 2015 to $105.00/barrel from $104.92/barrel. The agency also expected that the average benchmark price would decline from $100.98/barrel last month to $100.45/barrel.