IEA: oil prices stabilize at $80 per barrel by 2020

MOSCOW, November 10. Oil prices stabilize at $80 per barrel by 2020. This conclusion is contained in the baseline report of the International energy Agency (IEA) world energy Outlook.

However, the report considers the scenario in which oil prices can stay low for much longer. Thus, in connection with the removal from the market of high-cost producers of raw materials, dependence on the pricing policies of middle East exporters can reach the level of the 1970-ies, the Agency said.

The baseline scenario contained in the report, also suggests the growth in global energy demand by nearly a third between 2013 and 2040, which is caused mostly by the needs of the developing countries in Asia. In particular, the IEA predicts that by 2040 net oil import in China is almost five times higher than U.S. imports, while imports to India may exceed the imports to the EU.

Previously published in the October forecast, the IEA expected slow growth of demand for oil to 1.2 million barrels a day and predicted demand next year level to 95.7 million barrels a day. Slower growth in oil demand in 2016, the IEA’s experts associated with the deceleration of economic growth worldwide.