The increasing energy demands of emerging nations will drive oil output to record levels, the International Energy Agency has predicted.
The increasing demand of countries such as China would see 2014 oil demand reach a record 92million barrels a day, up 1.2million barrels a day the organisation said in its monthly oil market report.
Unseasonably cold weather among OECD (Organisation for Economic Co-operation and Development) countries helped raise estimates for oil use by 215,000 barrels per day, with total consumption expected to reach 90.8mbd.
Disruptions in Libya, Nigeria and Iraq saw OPEC crude oil supplies drop last month, but increased demand from North Africa and Turkey is helping keep Greek, Spanish and Italian refineries in business despite economic downturns in those countries.
Mediterranean refineries have been boosted by demand while northern European oil production has suffered from overcapacity.
“In the last three years, major European refiners in the Mediterranean basin, particularly in Spain and Greece, have seen a surprising revival in refining throughputs, bucking the trend in domestic oil demand,” the IEA report said.
“Chief among Spain’s new export markets are France and Italy, where overcapacity and flagging competitiveness have led to some of the largest cuts in refining capacity in Europe.”
Spanish gasoil exports are up 10% over the last two years to France, and 71% to Italy.
Recommended for you
