These Divergent Predictions Pose a Big Challenge for Oil Stocks
Global oil demand is on pace to rise by about 2.4 million barrels per day (mb/d) this year to an average of 102.3 mb/d. That would set a new record for demand. Most oil market experts expect oil demand to continue rising in the coming years.
However, there's a lot of debate about how much fuel remains in the tank. That's clear from divergent demand predictions by the International Energy Agency (IEA) and OPEC. Here's a closer look at their oil market forecasts and the implications for oil stocks.
The IEA recently released its medium-term outlook for the oil market based on current government policies and market trends. Overall, the IEA sees oil demand rising by 6% from 2022's level by 2028, when it will reach 105.7 mb/d. Fueling that growth is strong demand from the petrochemical and aviation sectors.
Source Fool.com
