09 May 2013 07:40 [Source: ICIS news]
TAIPEI (ICIS)--The growth in supply from non-OPEC countries will weigh on crude prices in the next few years, with prices expected to fall to around $80/bbl by the middle of this decade, an industry consultant said on Thursday.
"Strong non-OPEC growth will contribute nearly 900,000 bbl/day of new supply over the next few years," said Victor Shum, vice president at IHS Energy Insight.
Shum was speaking at the Asia Petrochemical Industry Conference (APIC 2013) which runs from 9-10 May in Taipei, Taiwan.
Oil prices are expected to increase again after 2015 as the surge in demand growth from developing economies forces OPEC to increase its supplies in the market, Shum said.
The early stages of motor vehicles growth in emerging Asian markets will drive transportation fuel demand growth, he said.
Transportation fuels account for nearly 80% of all crude-based refined products, according to Shum
Looking ahead, the use of condensates as feedstock in Asia will continue to grow and this will lower the import requirements of naphtha in the region, he added.
Condensate processing in China, Singapore and South Korea are expected to surge by 2015 on the back of projects which uses the material as a feedstock, according to Shum.
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