• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 38 mins U.S. Shale Oil Debt: Deep the Denial
  • 14 hours Satellite Moons to Replace Streetlamps?!
  • 2 days US top CEO's are spending their own money on the midterm elections
  • 1 day EU to Splash Billions on Battery Factories
  • 11 hours The Dirt on Clean Electric Cars
  • 9 hours Owning stocks long-term low risk?
  • 2 days The Balkans Are Coming Apart at the Seams Again
  • 2 hours Can “Renewables” Dent the World’s need for Electricity?
  • 2 days Uber IPO Proposals Value Company at $120 Billion
  • 2 days A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 2 days OPEC Is Struggling To Deliver On Increased Output Pledge
  • 2 days 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 1 day The end of "King Coal" in the Wales
The Oil Keeps Flowing: Iran Evades U.S. Sanctions

The Oil Keeps Flowing: Iran Evades U.S. Sanctions

While President Trump’s stated aim…

Large Crude Build Forces Oil Prices Lower

Large Crude Build Forces Oil Prices Lower

Oil prices slipped on Wednesday…

IEA Say that Oil Price May Fall to $89 a Barrel in Next Five Years

The International Energy Agency (IEA) has predicted that oil prices could fall over the next five years as a result of the slow global economy and low demand in comparison to the rising world production of oil following increased output from North America and Iraq.

The IEA has stated that the average price of oil per barrel should drop from $107 this year, to around $89 in 2017. They noted that “even China, the main engine of demand growth in the last decade, is showing signs of slowing down.” This poor economic growth, mixed with improvements to efficiency and a general theme to move away from fossil fuels, will mean that demand will be much lower than initially predicted.

Related Article: Smash the Rally in Oil

When they realised this the agency cut their growth forecasts for the period between 2011 and 2016 by 500,000 barrels a day, and this reduction will leave oil producers no option but to drop prices.

The IEA did, however, warn that due to the “exceptional uncertainty about the global economy and heightened regional geopolitical risks,” their predictions could turn out to be deceptive. The global environment surrounding the oil markets is just too unpredictable to make certain forecasts.

By. Joao Peixe of Oilprice.com


x

Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News