'Oil era is far from over,' says IEA's annual report

The Best ETF To Buy To Capitalize On Higher Oil Prices (OIH)

The Best ETF To Buy To Capitalize On Higher Oil Prices (OIH)

Global oil demand is expected to keep rising over the next two decades, albeit at a steadily decreasing pace, according to a new report released Tuesday by the International Energy Agency.

This sentiment comes in part on the back of rising US oil output C-OUT-T-EIA, which has grown by more than 14 percent since mid-2016 to a record 9.62 million bpd.

Under its "New Policies Scenario", based on existing legislation and announced policy intentions relative to emissions and climate change, the oil price should continue to rise towards $83 a barrel by the mid-2020s.

Crude has climbed lately to a two-year high around $57 United States a barrel in trading in NY, although it is not seen making much larger gains due to rising USA output.

The IEA's 2017 World Energy Outlook finds that global energy markets will be shaped by four major trends over the next three decades: The United States will become the world's leading producer of oil and natural gas; renewable energy, led by a major expansion of solar power in China and India, will experience rapid growth; the share of electricity - and electric vehicles - in the energy mix will expand; and China's continuing economic expansion will increasingly be fueled by clean energy. But the oil market isn't tightening as quickly as once anticipated, the IEA said in its monthly oil-market report.

Worldwide, oil consumption is seen reaching 97.7 million bpd in 2017, up 1.5 million bpd from 2016.

After hitting a 10-year low of less than $30 in January, down from a peak of more than $100 in mid-2014, oil prices have recently been hovering around the $55 mark. But analysts expect the price to not rise much further in coming months as the USA ramps up production.

NGT gives Delhi government nod to implement odd-even scheme
Pollution levels are 30 times the World Health Organisation's recommended limit in some areas of the national capital. NGT asks the Delhi government to prove whether the odd-even scheme has reduced pollution.

Add to that China's increasing stockpiling for internal use and demand for oil could slow more than expected.

The IEA estimates that there will be 50 million electric vehicles (EVs) on the road by 2025 and 300 million by 2040, from closer to 2 million now.

The Paris-based group said it cut its demand outlook for next year by 190,000 barrels a day, and global production could vault above demand by 600,000 barrels a day in the first quarter of 2018, and by 200,000 barrels a day in the second quarter.

"Next year's demand growth will struggle to match this", the IEA said.

It argues that fuel efficiency and rising electrification will bring a peak in oil used for passenger vehicles, even with a doubling of the auto fleet to 2 billion vehicles by 2040.

Between 2017 and 2040 the IEA estimates that more solar power capacity will be added globally each year than any other source of energy, with an annual average increase of almost 70 gigawatts.

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