Actually, a clarification, my error: "everyone" sees increased demand for oil next year. IEA and OPEC cut that increase in demand estimate by 300,000 bopd to 1.1 million bopd. Schlumberger cited the increase in demand for 2015 in their spending plans for next year. Wow, I'm glad folks keep me straight on all this. I had the same problem with debt and deficit. Ha.
That is interesting: a 1.1 million bopd increase in oil demand in 2015 -- that's not trivial. Something tells me the sell-off was a bit overdone.
IEA and OPEC both suggest oil demand will decrease in 2015 due to global slowdown. Schlumberger's outlook? Schlumberger looks for higher oil demand in 2015. I agree. The world's two largest economies, China and the US, are not falling back into recession. From Rigzone:
Schlumberger Ltd, the world's largest oilfield services company, said oil and gas spending would increase in 2015 as global oil demand is poised to rise, downplaying fears of an investment slowdown due to weak crude prices.
Schlumberger shares were up 7 percent at $97.10 in early morning trading.
The company reported a better-than-expected quarterly profit after markets closed on Thursday, helped by strong drilling activity in North America.
Oil prices have slid nearly 20 percent since June due to oversupply, signs of weak demand growth and indications that key oil producers, particularly Saudi Arabia, have limited appetite to intervene in prices.
"The key to the overall oil market is still that the global oil demand is currently set to increase by 1.1 million barrels per day in 2015, which will require growth in exploration and production investments," Schlumberger Chief Executive Paal Kibsgaard said on a post-earnings call on Friday.
The International Energy Agency earlier this week cut its 2015 estimate for oil demand growth by 300,000 barrels per day to 1.1 million bpd, citing weak global economies.
Oil demand was "largely unchanged," while supply was relatively "well balanced," Kibsgaard said on the call.
"WTI oil at $80 a barrel for a short time is unlikely to have an impact on growth and margins for the services companies, but $80 oil for more than a month or two certainly will," William Blair & Co analysts wrote in a note."Short time" vs "a month or two." Say what?
What Do The Russians Say?
Rigzone/Reuters is reporting:
Gazprom Neft, Russia's fourth biggest oil producer by output, said on Friday it did not see a fall in the oil price as a long-term trend, expecting it to return to the level of $95-110 per barrel.
Gazprom Neft, the oil wing of state gas company Gazprom, added that its investment projects envisage an oil price of $95 per barrel.
Brent has lost more than 20 percent of its value since June and was dragged down earlier in the week by signals from key OPEC members that the group was unlikely to intervene. It is now trading at $85.93 per barrel.