CNPC: int’l oil price to drop in 2012

Beijing (CNS) -- Oil prices should decrease during 2012, as supplies from sources other than the Organization of Petroleum Exporting Countries are increasing and oil production resumes in Libya, a recent report predicted.

The report was released by the Economics and Technology Research Institute (ETRI) under the auspices of the China National Petroleum Corporation (CNPC) on Thursday.

The estimates are based on the relatively stable status of the Iran issue, the authors underscore, which for now indicates Iranian oil exports to the world will probably remain constant. Though the price is likely to climb during the second half, the year average will still be below that of 2011, it points out.

Detailed expectations are that the world's oil demands, mostly from non-OECD countries, will increase by one million barrels per day, fully met by the daily supply increase of 1.5 million barrels. Demands of the OECD countries will wane the report asserts.

Natural gas consumption, another vital part of world's current energy consumption, amounted to 3.25 trillion cubic meters in 2011, a demand just met by 3.26 trillion in supply. The Asia-Pacific region is more dependent on natural gas than ever, with an hike of 11.5 percent in consumption within 2011, yet the same European market is shrinking by 6 percent during the same period.

Brazil was the main contributor to the oil reserve increase during 2011, while Iran and Russia are the two countries that have been more active in the exploration of natural gas reserves. Global oil gas exploration is expected to attract US$ 59.8 billion in investments in 2012.

The report also touches on U.S. oil consumption, where the market has had some success with weaning itself from its dependence on oil exports by deploying technology-based transformations in energy use modes and energy efficiency.