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Reports of oil's death are greatly exaggerated, IEA says in new forecast

Reports of oil's death are greatly exaggerated, IEA says in new forecast
From CBC - November 14, 2017

Global oil demand is expected to keep rising over the next two decades,albeit at a steadily decreasing pace,according to a new report released Tuesday by the International Energy Agency.

"It is far too early to write the obituary of oil, as growth for trucks, aviation, petrochemicals, shipping and aviation keep pushing demand higher," said Fatih Birol, executive director of the Paris-based IEA.

Overall global energy needs are seen risingmore slowly than in the past, but are still projected toexpand by 30 per centbetween today and 2040.

"This is the equivalent of adding another China and India to today's global demand," theIEAsaid in itsreport.

Net exporter

With biggains forecast in its output of shale oil, the United States is expected to become a net oil exporter by the mid-2020s, the IEA said, adding that the U.S. will account for 80 per centof the increase in the global oil supply to 2025, which will maintain near-term downward pressure on prices.

Crude has climbed lately to a two-year high around $57 US a barrel in trading in New York, although it is not seen making much larger gains due to rising U.S. output.

'Absurdly pessimistic'

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