The Rising Influence of Rising Affluence

[OakesCS]

COLUMN-Why is oil market rebalancing taking so long?
http://in.reuters.com/article/oil-global-kemp-idINL8N1AK2BG

the oil-exporting countries hit hardest by the slump were the themselves some of the fastest growing oil consumers before prices tumbled.

As oil revenues have shrivelled, their economies have slowed or gone into recession, removing one of the most dynamic drivers of oil demand, and leaving the rest of the world economy to fill the gap....

Oil-exporting countries accounted for more than one-third of the global increase in oil consumption outside the United States between 2004 and 2014, as rising oil revenues fuelled a boom in their domestic economies.

Between 2004 and 2014, oil consumption outside the United States increased by 11.4 million barrels per day (bpd) ("Statistical Review of World Energy", BP, 2016).

Fifteen oil-exporting countries identified separately in the BP Statistical Review accounted for 4.2 million bpd of extra demand (Canada, Mexico, Colombia, Ecuador, Venezuela, Norway, Azerbaijan, Kazakhstan, Russia, Algeria, Iran, Kuwait, Qatar, Saudi Arabia and United Arab Emirates).

Consumption growth was especially rapid in Saudi Arabia (+1.7 million bpd), Russia (+0.6 million bpd), Iran (+0.5 million bpd) and the United Arab Emirates (+0.3 million bpd).

But with the exception of Mexico, every one of the 15 oil exporting countries analysed separately in the review reported increased domestic oil consumption during the decade to 2014.

All the rest of global oil consumption growth was attributable to China (+4.4 million bpd), India (+1.3 million bpd) and Brazil (+1.2 million bpd).