Article Summary : Global Oil Demand

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1.0 Article Summary The article Global Oil demand to slow in 2016: IEA discusses demand of oil will slow in 2016 although oil prices had been fell to the lowest point in past three months. Fell of oil prices is caused by oil company keep raising the supply and not helped Greece and China to settle their financial chaos which may make a unsettled world markets. Oil prices fell from 60% in the earlier year and the demand will decrease to 1.2million barrels from 1.4mb/d this year. However, there is a peak in the first three-month of 2015 which is at 1.8mb/d. Although oil prices had fell but Organization of Petroleum-Exporting Countries (OPEC) had not decided to cut their oil production as it seen as a strategy for OPEC to defend their market…show more content…
The article indicated that demand of oil would fall by 2016 and non-OPEC oil prices has fallen from $114(AUS$161) a barrel last year to $56.53(AUS$80.17) a barrel this year (Ellyatt 2015). A decrease in price had leaded a short number of quantity demanded increase from 93.91mb/d 2014 to 95.46mb/d 2015 (generator 2015). This definitely will cause more demand for the people as the price falls but not huge percentage. However the curve had included some unsure demand forecast First will be Greece’s ongoing which make their macro-economic weaken but also reduce their oil product demand. In the other hand, Iran is a potential sanction of nuclear deal. These two reasons definitely will become great issues that reduce oil demand in the future (Ellyatt 2015). Both countries consider high oil consumption countries so there is a need to settle and solve their internal country issue in order to increase oil demand. Although oil Consumers are aware of the future prices fall but the demand of oil still decrease. This may cause by awareness of people and technology factors. Modern generation is more aware to protect the environment for next generation. There is a need to reduce any chance of harm to the earth. Transport that use oil will be their first priority to reduce as it contribute carbon dioxide to the air. Therefore, introduction of new technology has become an important issue. For example,
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