Oil Prices: Lower for Longer

December 18th, 2015 5:59 am | by John Jansen |

OPEC has issued a report with its long term prognostication on the price of oil. It has oil at $70 in 2020 and it gets back to $95 in 2040. (I am not so interested in 2040 as the actuarial charts make it a good bet that I will be pushing up daisies at that time).

Via the WSJ:

LONDON—The Organization of the Petroleum Exporting Countries said Friday that oil prices will remain below $100 a barrel in the long term but should bounce back from current levels, while demand for crude will rise more than currently expected.

In extracts of its World Oil Outlook report to be released on Dec. 23, the group said it assumes the reference basket of crudes produced by its members would rise from more than $70 a barrel in 2020 to $95 a barrel by 2040. That compares with $31.49 a barrel as of Thursday—the most recently available number.

The group also said supply of OPEC crude is set to expand to 40.7 million barrels a day by 2040, an increase of 1 million barrels a day compared with last year’s publication.

Write to Benoît Faucon at benoit.faucon@wsj.com

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  1. One Response to “Oil Prices: Lower for Longer”

  2. By DFTT on Dec 18, 2015 | Reply

    If you believe in “Hubbert’s Peak” by Kenneth Deffeyes written in 2005, then by 2019 oil production will have fallen from 90% of it’s peak in 2000/05. Based on Hubbert’s theories in 1956, the estimates for global oil reserves ranged from 2005 to 2036. Fits right into OPEC’S timeline or is it the other way around?

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