Energy Agency: Iraq's oil production growth in danger with the accelerated demand
to supplies caused by political unrest and violence in the State member of the Organization of Petroleum Exporting Countries (OPEC), with high demand thanks to the improving global economy.
According to the agency, which advises the United States and other industrialized nations in its report on the oil market in the medium term on Tuesday , global growth in demand for crude may start to slow down by the end of the current contract, which was due partly to higher prices.
Iraq is the second largest producer in OPEC. As some of Iraq's exports stopped since March while the organization also affected the production of the unrest in Libya and the sanctions imposed on Iran and oil theft in Nigeria.
Maria van der Hoeven , executive director of the International Energy Agency said in the introduction to the report, " Iraq remains the main source of most of the expected growth in production capacity in OPEC, but this growth appears to be at increasing risk," as reported by Reuters and seen by "Shafaq News".
The Energy Agency expects that OPEC may increase its production currently to a capacity more than by 2.08 million barrels per day to reach 37.06 million barrels per day by 2019. It is expected to contribute to Iraq by more than 60 percent of the increase.
The report is contrary to its previous report issued in May 2013 which is expected to contribute to the oil shale in the U.S. to meet most of the global demand for new crude including not give little room in front of OPEC to increase production without the risk of lower prices.
The Energy Agency predicts that average global oil demand in 2014 would reach 92.76 million barrels per day, up 960 thousand barrels per day from the expected in May 2013. Energy Agency said that the global demand growth will accelerate to 1.42 million barrels per day next year from 1.32 million barrels per day in 2014.
The agency said that OPEC members will need to pump more oil from those projected in the previous report.
It added that China will overtake the United States as the largest oil importer in the world this year to highlight the shift in the steady growth in demand for crude to Asia.
The Agency expected faster growth of demand in 2015, but now expects a slowdown because of environmental concerns and the existence of cheaper oil alternatives.
"It may not come 'peak demand' for oil - with the exception of mature economies – since several years ago, but the peak of the growth in oil demand for the market as a whole is already on the horizon,” it added.
