Global oil supply is expected to peak earlier than expected, along with steep price hikes, Reuters reported.
- Researchers at Morgan Stanley expect the global oil supply to peak earlier than demand, amid the cap of carbon emissions being pushed by global leaders. This would warrant consumption to the peak.
- The outlook comes ahead of the meeting of policymakers at the end of this month in Glasgow, Scotland to discuss global warming under the Paris Agreement in 2015, and oil end-use expected to boost supply and demand.
- Energy consultancy FGE said that while there are concerns on the current situation of upstream oil investment, this would be dealt with later as this would come in 2023 and not likely in the next 12 to 18 months.
- The International Energy Agency does not expect oil supply to peak in the short term, with the Organization of the Petroleum Countries and its partners accounting for a higher share of supply in the next decade.
The majority of the world’s producers and watchdogs expect the peak for oil demand at least several years away.