International Energy Agency predicts oil price rise up to $210 a barrel
Baku, Fineko/abc.az. The International Energy Agency (IEA), which issued yesterday World Energy Outlook 2011, predicts a sharp rise in world oil prices.
According to Agency’s findings, temporary stress on the oil markets may weaken because of slower economic growth and the expected return of Libyan oil to the market, but the dynamics of supply and demand continues to exert strong influence on prices.
"According to our assumptions, in scenarios of new strategies the average price of imported crude oil for the IEA countries will remain high, approaching to $120 per barrel in 2035 (at the rate of US dollar in 2010), i.e. more than $210 per barrel in nominal terms, although in practice the price volatility is likely to continue," it was reported.
The IEA points out that the lack of investment in field development and production of raw materials in the MENA region (Middle East and North Africa) may have far-reaching implications for world energy markets. Such a deficit can result from several factors, including higher expected investment risks, targeted policy strategies of governments seeking to slow the development of production capacity or to limit the cash flow in field development and production of raw materials in connection with the priority of spending on other state programs.
"If during the period from 2011 to 2015 investments in the MENA region are by a third lower than $100 billion per year, estimated in scenarios of new strategies, then in the near future the consumers may face a significant rise in oil prices up to $150 per barrel (at US dollar rate in 2010)," the Agency said.
According to its estimates, Russia will be the main supplier of oil by 2035 (9.7 million bpd).
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