Oil Prices to Stay Below $100 for Next Decade
NEW YORK — Oil prices will remain below the psychologically important $100-a-barrel mark until at least 2025, according to a draft report by the Organization of the Petroleum Exporting Countries (OPEC), seen by The Wall Street Journal.
In its most optimistic scenario, OPEC, which represents 12 oil-producing countries, forecast that oil will sell for around $76 per barrel in 10 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.
Oil prices will remain below the psychologically important $100-a-barrel mark until at least 2025, according to a draft report by the Organization of the Petroleum Exporting Countries (OPEC), seen by The Wall Street Journal.
In its most optimistic scenario, OPEC, which represents 12 oil-producing countries, forecast that oil will sell for around $76 per barrel in 10 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 percent 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.
Crude oil markets held their breath in early Monday trading as markets waited for official word on midseason trajectory from members of OPEC.
Last week’s price rally faltered by Friday, with the US benchmark, West Texas Intermediate, losing about 2 percent of its value and Brent crude oil prices holding relatively stable near the $65 per barrel mark. Brent started Thursday around $67 per barrel.
The global benchmark Brent fell to around $64.87 per barrel in early Monday trading, a 2 percent drop since the beginning of May.
WTI prices were off slightly early in Monday trading, falling about 25 cents, or less than 1 percent, to $59.14 per barrel, relatively on par with the price at the start of May. — SG/Agencies