OPEC: $100 Oil Unlikely To Be Seen Again Until After 2040
Oil prices will trade above $100 per barrel - just not anytime soon.
According to OPEC's report, oil costs (in real terms) will rise to $70 per barrel in 2020, and remain below $100 per barrel for the following 20 years, reaching as high as $95 per barrel in 2040.
OPEC also predicted global demand for oil will reach 97.4 million barrels per day by 2020 and 110 million barrels a day by 2040.
"The impact of the recent oil price decline on demand is most visible in the short-term," OPEC noted in its report. "It then drops away over the medium-term. This is due mainly to changing prospects for economic developments, the fact that in many countries the price of crude accounts for a limited share in the retail price of final oil products, and given some structural changes in various oil demand sectors related to efficiency improvements, energy conservation measures and some fuel substitution."
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