U.S. expects long-term increase in oil prices above $100 per barrel
Azerbaijan, Baku, June 1 / Trend A.Badalova /
The State U.S. Energy Information Administration (EIA) forecasts that world oil prices will reach above $100 a barrel in the long run.
Based on the EIA International Energy Outlook 2010, after two years of declining demand, world liquids consumption is expected to increase in 2010 and strengthen thereafter as the world economies recover fully from the effects of the recession.
Oil prices have been especially sensitive to demand expectations, with producers, consumers, and traders continually looking for an indication of possible recovery in world economic growth and a likely corresponding increase in oil demand.
EIA predicts an increase in prices for U.S. crude oil WTI from $79 per barrel in 2010 to $108 in 2020 and $133 per barrel in 2035.
World use of liquids and other petroleum grows from 86.1 million barrels per day in 2007 to 92.1 million barrels per day in 2020, 103.9 million barrels per day in 2030, and 110.6 million barrels per day in 2035, the agency reported.
Average oil prices increased strongly from 2003 to mid-July 2008, when prices collapsed as a result of concerns about the deepening recession. In 2009, oil prices trended upward throughout the year, from about $42 per barrel in January to $74 per barrel in December.
As a result of trades on Friday May 28, July futures price for U.S. crude WTI fell by $0.58 to $73.97 per barrel at the New York Mercantile Exchange. June futures for North Sea Brent crude fell by $0.64 to $74.02 per barrel on London Stock Exchange.
The main reason for the fall in world oil prices was the strengthening of the U.S. dollar.
In general, oil prices have declined by more than $12 in May on the background of the debt problems in Europe. Such a sharp drop in prices caused concern of OPEC. Head of Libya's national oil company Shokri Ghanem said, if the prices fall to $60 per barrel, the organization would hold an extraordinary meeting.
The next OPEC meeting is scheduled for October 15. Today, OPEC set oil production quotas at 24.84 million barrels a day.
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