Oil prices to stay be­low $100 for next decade, says OPEC

Financial Mirror (Cyprus) - - FRONT PAGE -

Oil prices will re­main be­low the psy­cho­log­i­cally im­por­tant $100-abar­rel mark un­til at least 2025, ac­cord­ing to a draft re­port by the Or­gan­i­sa­tion of Petroleum Ex­port­ing Coun­tries (OPEC), seen by The Wall Street Jour­nal.

In its most op­ti­mistic sce­nario, the car­tel of 12 oil-pro­duc­ing coun­tries, fore­cast that oil will sell for around $76 per bar­rel in ten years’ time, ac­cord­ing to the re­port.

How­ever, it warned that crude oil could cost as lit­tle as $40 per bar­rel in 2025.

“$100 is not in any of the sce­nar­ios,” said a del­e­gate at an OPEC pre­sen­ta­tion last week in Vi­enna, ac­cord­ing to The Wall Street Jour­nal.

OPEC has re­fused to cut its out­put fol­low­ing a 60% crash in oil prices that be­gan in June last year. Brent and WTI crude prices have par­tially re­cov­ered from the lows seen at the start of 2015 to trade at around $65 and $59 per bar­rel re­spec­tively.

The draft re­port seen by the news­pa­per rec­om­mended that OPEC rein­tro­duce the quota sys­tem it largely aban­doned in 2011, which limited how much oil each mem­ber coun­try could pro­duce.

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