Market supply exceeds demand, and the low oil price trend may change after 2017

Sun Xiansheng, Secretary-General of the International Energy Forum, said in Algiers on the 27th that it will take some time for international oil prices to reverse the downturn and stabilize, and it may not be achieved until 2017.
In an interview with Xinhua News Agency reporters at the 15th International Energy Forum held in Algiers, the capital of Algeria, he said that the forum conducted a questionnaire survey on government officials, experts, scholars and other energy professionals who participated in the forum, and most of the respondents Respondents believe that the current downturn in oil prices will not change until after 2017.
At present, the international crude oil market is obviously oversupplied. Since 2014, there has been a situation of “three majors and two declines”, that is, the supply of crude oil, refined oil and natural gas exceeds demand, and the prices of oil and natural gas have fallen sharply. This situation has not changed significantly until now.
Low oil prices are detrimental to both producing and consuming countries. Due to the continued low oil prices in the past two years, investment in the global oil industry has decreased by US$300 billion. The number of new proven reserves in the past two years has been the smallest in history, which has brought great uncertainty to future oil production. Decreased oil investment and production may over time lead to a shortage in the market, causing a new round of oil price surges.
He said that most countries, including oil producing and consuming countries, believe that oil prices should be in a more reasonable range, which is not only beneficial to all parties, but also a guarantee of energy supply security.
The International Energy Forum is headquartered in Riyadh, the capital of Saudi Arabia. It advocates promoting dialogue between energy producing countries and consuming countries to increase the transparency of the oil and gas market and ensure the stable operation of the international energy market.