Oil to remain at $55 in 2015: IEA

Sarkaritel
By Sarkaritel February 11, 2015 11:37

Oil to remain at $55 in 2015: IEA


Paris, Feb 11  The International Energy Agency (IEA) said it predicts the price of Brent oil to remain at an average of $55 a barrel throughout 2015.

The IEA, in a report titled “Medium-Term Oil Market Report”, said Brent would only climb to $60 in 2016, adding that the benchmark is not expected to surge anywhere above $73 before 2020.

The report emphasised that rapid slide in oil prices over the last nine months would not last much longer. However, it added that the rebound would be limited and would not feature prices at the heights of the last three years.

IEA’s price assumptions mark a steep downgrade from its report lat year, when prices of $100 a barrel in 2015 and 2016 were expected.

Oil prices have slumped more than 50 percent since June last year amid a surge in oil supply led by US shale oil production and sluggish demand.

This has already taken a toll on the oil industry, with project delays, layoffs and cancelled spending.

The economic impact of lower prices on the Organisation of the Petroleum Exporting Countries (OPEC) has been severe.

OPEC said Monday that demand for its oil would increase to 29.2 million barrels a day this year. That is still below the group’s output quota of 30 million barrels a day, but a significant upward revision from previous forecasts.

Sarkaritel
By Sarkaritel February 11, 2015 11:37