The Ministry of Industry, Commerce, and MSMEs ordered that, for the week of August 1 to 7, fuels are sold at the following prices:
According to a MICM note, earlier this year, the coronavirus pandemic reduced daily oil consumption to one-third of normal consumption, at a time when the rise in electric vehicles and the shift to renewable energy sources were already underway prompting downward revisions to long-term oil demand projections. This situation has led some OPEC authorities to wonder if the dramatic disruption of demand this year augurs a permanent change and what would be the best way to manage supply if the oil era is coming to an end.
The world is waking up to a new reality and trying to work around it all, there is a possibility in the minds of all the key players that consumption will never fully recover. This year’s crisis, which caused oil to drop below $ 16 a barrel, led most OPEC + members to question long-held views on-demand growth prospects.
OPEC’s work will be more difficult in the future due to lower demand and increased non-OPEC production. In 2019, the world consumed 99.7 million barrels per day, and OPEC originally anticipated that it would increase to 101 million BPD by 2020. However, this year’s worldwide closure due to the pandemic, which caused the paralysis of flights and dramatically reduced street traffic led OPEC to lower the 2020 forecast to 91 million BPD, with demand expectations for 2021 still below 2019 levels.
Energy analysts, oil companies, and producer countries have been trying for a long time to calculate when the world will reach the “peak of oil,” from which point consumption will begin to fall permanently. However, demand has steadily increased each year, with occasional exceptions amid economic crises. OPEC has been lowering its expectations, in 2007 I forecast that by 2030 world demand would reach 118 million BPD, last year they made the correction to 108.3 million BPD, and their November report is expected to show another downward revision.