IEA: The Risks of Oil Supply Are Increasing

The new report published by IEA shows that the average demands for oil is estimated to be 927.6 million barrels per day in 2014 for global economic recovery, higher than 9.6 hundred thousand barrels which was estimated in 2013. Meanwhile, demands for oil will increase to 14.2 million barrels per day in the next year, higher than 13.2 barrels in 2014.

The demands are rising while the risks of oil supply are also increasing. IEA shows that current oil market becomes more nervous than before. It mentions the risks at supply side caused by unrest in Iraq, sanctions on Iran and oil theft in Nigeria, especially the risks in Iraq.

The demands are rising while the risks of oil supply are also increasing. IEA shows that current oil market become more nervous than before. It mentions the risks at supply side caused by unrest inIraq, sanctions onIranand oil theft inNigeria, especially the risks inIraq.

Nowadays,Iraqhas already become the second largest oil producing country of OPEC. In February, the output of oil reached to 3.6 million barrels per day, the highest level in 35 years andIraqplanned to reach to 4 million barrels per day in this year.

IEA predicts that global promotion of shale oil production may be realized before 2020, faster than prospection before. By 2019, shale gas or light tight oil will reach to 6.5 hundred thousand barrels daily except for the U.S.including 3.9 hundred thousand barrels in Canada, 100 thousand barrels in Russia and 90 thousand barrels in Argentina. In 2019, output of shale oil in the U.S.will double to 5 million barrels per day, compared with 2013.

Experts consider that global economic recovery and sustaining unrest in oil producing region maintain prices of oil at a high level, stimulating exploration of oil and development of shale oil and unconventional oil.