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World oil demand will increase in the medium term reaching 97.4 million barrels per day in 2020 compared to 91.3 million barrels per day in 2014, according to the OPEC forecasts, shown in World Oil Outlook (WOO), published on December 23.

During this period, oil demand in the OECD (Organisation for Economic Co-operation and Development) countries is projected to decline by 0.2 million barrels per day, totalling 45.6 million barrels per day in 2020. Oil demand in developing countries is anticipated to increase by 6.1 million barrels per day between 2014 and 2020, reaching 46.4 million barrels per day.

Demand in Eurasia is expected to increase by 0.3 million barrels per day, totaling 5.5 million barrels per day by the end of the medium-term.

Short- and medium-term oil demand growth estimates are clearly impacted by the recent decline in oil prices, according to the report.

Oil demand is estimated to increase by 1.5 million barrels per day in 2015 to 92.8 million barrels per day and by 1.3 million barrels per day in 2016 to 94.1 million barrels per day.

For the long-term, OPEC forecasts oil demand increasing by more than 18 million barrels per day between 2014 and 2040, reaching 109.8 million barrels per day at the end of the forecast period.

Demand in the OECD region is expected to decrease by 8 million barrels per day, down to 37.8 million barrels per day in 2040. However, oil demand in developing countries is expected to increase by almost 26 million barrels per day to reach 66.1 million barrels per day at the end of the forecast period. Demand in Eurasia is estimated at 5.8 million barrels per day in 2040.

Meanwhile, total non-OPEC oil supply will increase from 56.5 million barrels per day to 60.2 million barrels per day over the period 2014–2020, which is an increase of 3.7 million barrels per day.

The Outlook says that non-OPEC supply will reach 61.5 million barrels per day in 2025, but then will decline to 59.7 million barrels per day in 2040.

However, overall non-OPEC crude oil supply is set to decline by 3.1 million barrels per day over the forecast period.

The main long-term increases in non-OPEC crude supply come from Latin America and the Caspian region.

Global liquids supply is projected to increase by 5.2 million barrels per day in the mid-term, rising from the level of 92.4 million barrels per day recorded in 2014 to 97.6 million barrels per day projected for 2020.

In 2040 world liquids supply will rise to 110 million barrels per day, according to OPEC forecasts.

The Outlook says that OPEC crude supply will increase from 30 million barrels per day in 2014 up to 30.7 million barrels per day by 2020. Then, in the 20-year period between 2020 and 2040, OPEC crude is expected to expand by 10 million barrels per day to a level of 40.7 million barrels per day in 2040.

The share of OPEC crude in the total world liquids supply is projected to increase to 37 percent in 2040, compared to current levels of around 33 percent.

Oil-related investments required to cover future demand for oil over the period 2015–2040 is estimated at almost $10 trillion. In particular, the investments needed for the upstream sector are estimated at $7.2 trillion, the report said. Most of this will be made in non-OPEC countries, and over the medium-term, they will need to invest around $250 billion each year.

OPEC, on the other hand, will need to invest an average of more than $40 billion annually in the remaining years of this decade, and over $60 billion annually in the long-term.

Average annual upstream investment requirements for non-OPEC in the long-term will decline to around $210 billion on the back of declining crude supply.

The investments needed in the midstream and downstream sector combined are estimated at around $2.7 trillion between 2015 and 2040.

The Cartel believes that growing demand and slower than previously expected non-OPEC supply growth will eliminate the existing oversupply and lead to a more balanced market, which, in turn, will provide support to oil prices.

OPEC forecasts oil prices to reach $70 a barrel by 2020.

In the Outlook OPEC Reference Basket (ORB) is assumed to average $55 a barrel during 2015 and to resume an upward trend in both the medium - and long-term. ORB is expected to reach $80 a barrel by 2020.

The price of the ORB in real terms is assumed to rise from more than $70 a barrel in 2020 to $95 a barrel in 2040.

While the average price of the OPEC Reference Basket during the first half of 2014 was over $100 a barrel, it dropped to less than $60 a barrel in December 2014 and has averaged close to $53 a barrel in the first nine months of 2015.

Global oil prices plunged from about $108 in the first half of 2014 to below $40 currently due to glut in markets.

OPEC members failed to reach an agreement on production ceiling on December 4.

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