Sam Fletcher
Senior Writer

Growing demand for crude combined with the slowdown in production of new supplies in other countries is placing the Organization of Petroleum Exporting Countries in a powerful position, say industry analysts.

"Given the mature characteristics of much of non-OPEC oil production, it does not appear feasible that non-OPEC countries, as a group, will be able to deliver meaningful oil supply growth in the future. A permanent non-OPEC peak seems likely within the next 5 years," said analysts in the Houston office of Raymond James & Associates Inc.

"Non-OPEC growth is highly dependent on Russian growth and, given its current policy environment and recent production declines, Russia would do well to return to 2-3% growth," Raymond James analysts said. "Accordingly, the world is likely to continue in an environment of thin excess capacity for the foreseeable future. Given this tight supply-demand equation, threats of even minor supply disruptions are bound to have a large impact on oil prices."