CERA has a contrarian take on oil markets in a new report out this past week. It says that oil supply will outstrip demand for the rest of the decade:
Despite current fears that oil will soon “run out,” global oil production capacity is actually set to increase dramatically over the rest of this decade, according to a new report by Cambridge Energy Research Associates (CERA). As a result, supply could exceed demand by as much as 6 to 7.5 million barrels per day (mbd) later in the decade, a marked contrast to the razor-sharp balance between strong demand growth and tight supply that is currently reflected in high oil prices hovering around $60 a barrel.
The paper will be presented during a conference in Turkey June 28-30.
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