OPEC will see that whatever demand prevails will be consumed by non-OPEC suppliers
The Organization of Petroleum Exporting Countries meeting later this month could represent a landmark in terms of how the group will prepare to handle difficulties ahead.The difficulty arises from the fact that for foreseeable future, or fo the next five years at least, OPEC will see that whatever demand prevails will be consumed by non-OPEC suppliers, which means eating eventually into its market share.Moreover, and for the first time, a breakthrough in technology is presenting the conventional hydrocarbon supplier and the oil market final resort with its most daunting challenge so far.The boom in shale oil production in the US, sand oil in Canada and deep water drilling in Brazil are providing the market with unconventional supplies that have already started impacting on OPEC supplies to the market.
Opec is breaching its production limits the most in six years, signalling the world's biggest suppliers are ready to pump more crude next year as oil rallies toward $100 a barrel.