IEA Improves Forecast Of Oil Price To $88 Per Barrel In 2025, To $112 In 2040 - Report

MOSCOW (UrduPoint News / Sputnik - 13th November, 2018) The International Energy Agency (IEA) has improved its forecast for oil price by some five percentage points to $88 per barrel in 2025 and by one percentage point to $112 per barrel in 2040, according to IEA's World Energy Outlook 2018 report.

In September, the oil price surpassed $80 per barrel for the first time since 2014 in light of geopolitical events, the decrease in Venezuelan output, and decisions made by major oil exporters, which affected production prospects, according to the report.

"In the wake of the fallout from the 2014 oil price crash, the continued expansion of tight oil production in the United States and the prospect of major structural changes in oil consumption underpinned a view that the oil price was set to stay lower for longer, perhaps for ever.

The reality has been different," the report read.

According to the report, taking into account current countries' energy policies and their announced plans, oil price is projected to gradually increase from the average price of $52 per barrel in 2017 to $88 per barrel in 2025, $96 in 2030, $105 in 2035 and $112 in 2040.