Oil producers should take a “managed investment” approach to their future output to limit exposure to potential oversupply once peak demand hits global crude consumption, according to a new report.
Concerns over peak oil demand — forecast by the International Energy Agency (IEA) to take place within the next decade — could lead to oversupply and trigger a prolonged phase of falling prices, which in turn would hit returns of new projects and company valuations, according to analysis by UK think-tank Carbon Tracker.
