ISLAMABAD  - Given that signs of a recovery in crude oil demand are still elusive and a cut in supply is still not visible, when the slide in prices might halt remains an unanswered question for analysts. The thought of these coming further down is a cause for concern - for oil-producing countries, as well as India’s upstream oil companies.

Another important feature is Saudi Arabia’s leadership of the Organization of the Petroleum Exporting Countries (Opec), which has steadfastly refused to lower supply. Though there were whispers in the oil world that with Saudi King Abdullah-bin Abdulaziz’s death the strong no-supply-cut stand might be changed.

A reduced price brings down the ability to produce from scavenger wells. Any price below $70 a barrel affects this production, Business Standard reported.

Other factors, such as weak currencies in consumer economies, subsidy cuts,consumer tax hikes, l/wer spending in producer countries and mounting deflationary concerns, have kept demand growth in check so far. Demand growth is still forecast to somewhat pick up this year from the last one but it is not expected to exceed 900,000 bpd.

The total global oil product demand averaged 92.4 million bpd in 2014, an increase of 620,000 bpd (or 0.7 per cent) over a year earlier. This marked a five-year low for growth, as sharp declines in OECD (Organisation for Economic Co-operation and Development) Europe and OECD Asia-Oceania coincided with notable slowdowns in China, the former Soviet Union and Latin America. “Global growth is forecast to modestly accelerate in 2015, to 910,000 bpd (or +1.0 per cent), as macroeconomic momentum is tentatively forecast to pick up,” said IEA.