Oil price moves to $62.54 amid new OPEC report

•OPEC targets Crude price stability

By Udeme Akpan

Oil price recorded fresh rally yesterday on the heels of a positive outlook seen in the Organisation of Petroleum Exporting Countries, OPEC’s, 2019 World Oil Outlook, a medium-to long-term projections and assessment for the global oil and energy industry.

Bonny Light, Nigeria’s premium oil grade, which has been hovering between $58.00 and $61.00, in the past two weeks, yesterday leaped to $62.54, the highest in recent times.

Similarly, the prices of Brent and OPEC Basket also rose from $61.20 and 59.10 to $62.72 and $60.19 per barrel respectively.

However, in its ‘Oulook’ obtained by Vanguard, OPEC stated: “All forms of energies will be required in the future to help to meet expanding demand in a sustainable way, balancing the needs of people in relation to their social welfare, the economy and the environment.

“Natural gas witnesses the largest demand growth in absolute terms, and renewables the largest growth in percentage terms. 

Oil is expected to remain the fuel with the largest share in the energy mix throughout the forecast period to 2040. Oil demand is forecast to reach 110.6 mb/d by 2040.

“The non-OECD drives oil demand with growth of 21.4 mb/d by 2040 (compared to 2018), whereas the OECD region is expected to contract by 9.6 mb/d. Long-term demand growth comes mainly from the petrochemicals (4.1 mb/d), road transportation (2.9 mb/d) and aviation (2.4 mb/d) sectors. 

The total vehicle fleet including passenger and commercial vehicles is estimated to grow by more than 1 billion by 2040 to around 2.4 billion.”