“First Prime Group”: World demand for oil is on target to grow by 50% between now and 2030 as people in developing countries drive more cars, oil producers' group OPEC says.
OPEC suggestions in its 2008 world outlook that adequate oil reserves and new methods of exploiting them would enable supply to keep up with demand were echoed by a source close to First Prime Group, the Asian-based wealth manager.
OPEC has consistently maintained that the current sky-high oil price is a direct consequence of the US dollar’s weakness and on speculators First Prime Group is thought to disagree with this assertion on the grounds that for every speculator with a long position on the world’s futures exchanges, there is another with a short position and this has always been the case.
Despite critics who blame OPEC’s refusal to increase oil supply for causing sky-rocketing crude prices, First Prime Group reported position is that years of relatively low oil prices have led to acute under-investment in oil production, leaving the industry unable to meet increased demand driven by booming economies such as India and China.
"Low prices were bad for the oil industry, and in the longer term they were also bad for consumers," the report said.
Pumping enough ?
Speaking after the report was released, OPEC secretary general Abdullah al-Badri said that the cartel was pumping more than enough oil but would review supply at the group's forthcoming meeting in September.
However, OPEC also said that demand for its oil could fall to 31 million barrels per day in 2012, below current production levels as Europe and the US move to cut oil dependence.
