LONDON — Global demand for oil from OPEC next year will be far below its current output level because of the U.S. shale boom, the group said Wednesday, as its top producer, Saudi Arabia, kept silent on whether it will cut output to remove surplus oil from the market.
Saudi Arabia, unusually, has not commented publicly on the fall in oil prices to their lowest since 2010, which has prompted industry watchers to wonder whether the kingdom may be moving away from a policy of managing the market and instead pursuing geopolitical goals.
Oil in October fell below $83 a barrel and on Tuesday reached $80.46, its lowest since 2010.
In a monthly report on Wednesday, the Organization of the Petroleum Exporting Countries (OPEC) forecast that 2015 demand for its oil will drop to 29.20 million barrels per day (bpd) — almost 1 million bpd less than it is currently producing.
Russia, the world's No. 2 oil exporter, calculated its 2015-17 budget on the assumption that oil would sell at $100 per barrel. The unexpectedly low oil prices, in combination with Western sanctions and Russian counter-sanctions over Ukraine's crisis, have helped dragged down the ruble to just under 30 percent to the dollar since January.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
