The IEA say global oil demand will depend more and more on OPEC, which makes syndicate chief Abdallah Salem el-Badri a very powerful man.
“We have seen an increase in non-OPEC supplies. But in the mid-term, non-OPEC production will decline,” Nobuo Tanaka, the [IEA]’s executive director, told reporters on the sidelines of a conference. “So, dependency on OPEC oil will increase.”
“The cost of production in OPEC countries is also much cheaper,” he added.
Many had hoped big discoveries in Russia and Brazil, along with alternate energy development, would limit dependence on the syndicate.
Of course, this also means more demand pushing oil higher.
Don’t miss: 12 Oil Leaders Who Have America At Its Knees