Supply-demand balance of crude oil possible by 2017 – IEA

22 October 2012 09:20  [Source: ICIS news]

SINGAPORE (ICIS)--Supply and demand of crude oil is expected to be balanced by 2017, a senior official from the International Energy Agency (IEA) said on Monday.

“The global oil map will be redrawn within the next five years. Most of the new supply is expected to come from the Americas, most of the new demand will come from Asia … Asia is a key region in this new paradigm,” said Maria van der Hoeven, executive director of the IEA.

She was speaking at the Singapore International Energy Week conference, which is held on 22-25 October.

Earlier this month, the IEA had forecast oil production capacity to outstrip demand by 6.3m bbl/day in 2017.

The emerging economies of countries such as China, India, Indonesia and Thailand will fuel Asian demand for crude oil, van der Hoeven said. 

She added that Asia will see more aggressive refinery expansion in the next five years.

“Twin factors of supply moving west and demand moving east will not be without consequences … we’ll see resurging refinery capacity and expansion in Asia and the Middle East,” she said.

The IEA, an inter-governmental organisation, acts as an energy policy advisor for 28 oil-importing countries.

By: Muhamad Fadhil
+65 6780 4356

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