Standard Chartered Bank Senior Economist MENA, Pakistan Bilal Khan discusses OPEC, the price and production of oil. He speaks on “Bloomberg Markets: Middle East.”
The US expects to breach the 10 million bpd by summer, so does that mean that winds are shifting against OPEC?
“Brent will continue to consolidate around $61 for 2018, lower than actual prices now,” Khan said.
“We are looking at global oil demand of over 1.6 million barrels per day in 2018, so accounting for non-OPEC producers especially in North America, with their supply being around 1.1 million bpd.”
China is showing strong demand for oil.
“Demand will be a serious issue as it is the reason why prices are rising,” said Khan.
“With global growth expected at 3.8% coming mostly from Asia and China in particular, even with US shale production, demand for oil will play a significant role and the oil market will be supported.”