The global appetite for oil seems insatiable, and it’s growing. However, the supply of oil is not coming out as fast as it’s being used. Oil exchange traded funds (ETFs) may start reflecting the rise in oil prices as the disparity between supply and demand widens.
Eating away at the stockpiles of crude oil, the growing world oil demand will probably outstrip supply in 2010, David Sheppard and Joshua Schneyer for Yahoo! Finance. (Why oil ETFs are stirring).
A Reuters poll of the top 10 oil-tracking analysts and organizations estimates that oil demand will rise by 1.3 million barrels per day (bpd) in 2010 to 85.9 million bpd. On the flip side, supply from outside of the Organization of Petroleum Exporting Countries (OPEC) and output of natural gas liquids from OPEC may only grow by 800,000 bpd.
Non-OPEC output is projected to average 51 million bpd in 2010 and OPEC output of natural gas liquids are expected to rise to 5.6 million bpd, up 20% since 2008. If OPEC maintains present quotas, crude oil inventories may drop by 150 million barrels in 2010.