There will come a time in the future when oil demand stops growing, but recent forecasts putting that date in 2023, five years from today, should be viewed with skepticism.
Long-term forecasts about oil market behavior are notoriously wrong and often come back to embarrass those who make aggressive calls. Recall the â€śpeak oilâ€ť supply projections that permeated markets a decade ago, how did that work? The industry now finds itself in an unprecedented â€śera of abundanceâ€ť thanks the prolific shale revolution. The supply picture is so robust that the Organization of Petroleum Exporting Countries (OPEC) and some non-OPEC partners, led by Russia, have deliberately kept 1.8 million barrels a day of production off the market since late 2016 to prevent global crude prices from crashing.