Oil prices not to shoot back to $100 anytime soon

Baku, Azerbaijan, Feb. 20

By Aygun Badalova - Trend:

Analysts at British economic research and consulting company Capital Economics do not expect oil prices to shoot back to $100 per barrel anytime soon.

"The rebound in the price of Brent over the last two weeks supports our view that oil prices will gradually climb back to around $70 per barrel over the medium term, helped on their way by further evidence of reductions in investment," analysts said in a report obtained by Trend.

"However, we do not expect prices to shoot back to $100 anytime soon," they said.

The recent bounce back in the price of Brent appears to have been driven by the sharp drop in the number of rigs drilling for oil and the slew of announcements from major oil companies that they are cutting back on investment, analysts believe.

They expect further decreases in the US oil rig count and additional announcements of investment cuts by major oil companies over the next few months, as more drilling rigs come to the end of their production runs.

"This should eventually lead to falls in US shale oil output, as production from new wells can no longer compensate for the declines in old ones," analysts said.

Slowing production growth around the world, and especially in the US, is a key reason why analysts of British company expect the price of Brent to grind slowly higher over next few years.

However, high stocks and the potential for US shale producers to ramp supply back up quickly should prevent prices from surging, they also believe.

Overall, analysts expect the price of a barrel of Brent to end the decade at $70 per barrel.

During electronic trading on the New York Mercantile Exchange on February 19, the West Texas Intermediate (WTI) for March delivery decreased by $0.98 to $51.16 a barrel.

April Brent, which is the benchmark price for products in Europe and Asia, decreased by $0.32 to $60.21 a barrel on the London-based ICE Futures Europe exchange.

---

Aygun Badalova is Trend Agency's staff journalist, follow her on Twitter:@AygunBadalova

Tesla Israel headquarters nears completion
Tesla Israel headquarters nears completion
Israel registers 9,089 new COVID-19 cases, 574,718 in total
Israel registers 9,089 new COVID-19 cases, 574,718 in total
Israeli pensioners party after COVID-19 booster shots
Israeli pensioners party after COVID-19 booster shots
Loading Bars
Latest
Denmark halts UAE flights for five days over COVID-19
UK business activity suffers steep slump in January amid fresh lockdown
Kazakhstan boosts exports volume to Canada amid COVID-19
Kenya Airways suspends flights to France, Netherlands due to COVID-19
Italy tells TikTok to block users after death of young girl
UK records another 40,261 coronavirus cases, 1,401 deaths
Canada's Trudeau presses Pfizer CEO on vaccine shortage, hints at travel crackdown
Swiss court finds Israeli businessman Beny Steinmetz guilty of corruption
Georgian ski resorts remain closed
Kazakhstan increases volume of petroleum oil exported to Germany
Four men jailed for manslaughter of 39 Vietnamese migrants in UK
Reports that Azerbaijani Minister of Sports fell into coma - not true
Turkey registers more than 5 967 new coronavirus cases
Iran has increased oil export - Minister
UAE confirms it inked $23 billion deal to buy F-35 jets, drones from U.S.
Georgian President meets EU Commissioner for Neighborhood and Enlargement
Azerbaijan discloses trade surplus with Romania
East Kazakhstan prolongs restrictions
Azerbaijani State Customs Committee exceeds forecast of budget receipts in 2020
‘Bibiheybat’ Ship Repair Yard completes overhaul of ‘Ramiz Hajiyev’ floating crane
Azerbaijan’s export of precious stones and natural pearls up
State Oil Fund of Azerbaijan unveils budget revenues and expenditures
Azerbaijan's Central Bank talks images of new manat banknotes appearing on social media
Azerbaijan discloses area of liberated lands sown with wheat in Aghdam
Azerbaijan confirms 632 more COVID-19 recoveries
Azerbaijani, Georgian FMs exchange views on latest situation in region
Period of revival of previously occupied Azerbaijani lands already began - ambassador
Denim production to be launched at textile enterprise in Uzbek Bukhara region
Azerbaijani expert talks future plans for import of hydrogen vehicles
Georgia - one of largest beneficiaries of EBRD investments per capita
USAID provides comprehensive support to entrepreneurship dev’t in Turkmenistan
French Proparco provides Georgian hospitals with grant to support COVID-19 battle
Uzbekistan to make strengthening relations with states of Central Asia priority
Georgia to establish blackberry plantation via state program
India’s role in combating COVID-19 through vaccine development and manufacturing
Russian Gazprombank expecting Azerbaijani sovereign rating's return to 'stable' outlook
Support for revival of Nagorno-Karabakh must become way of life – Azerbaijani minister
Tesla Israel headquarters nears completion
Armenian soldiers demanding compensation for participation in Karabakh war
Azerbaijan shows footage from Yukhari Abdurrakhmanli village of Fuzuli (VIDEO)
Azercell is always leading with its exemplary service quality
Uzbekistan may consider temporary suspension of yarn exports
Georgia reveals volume of domestic debt
Walmart expands vaccinations in boost to U.S. COVID-19 program
Israeli company eyes creating lavender plantations in Uzbek Namangan region
Georgia reveals volume of imported oil bitumen
European standard bakery to open with support of Bank of Georgia
Kazakhstan investing in Georgia across wide range of economy spheres
Georgia sees decrease in import of aviation fuel
Azerbaijani president declared Karabakh status issue - thing of the past, MFA says
Dagestan starts exporting ceramic products to Azerbaijan
Georgian RMG Gold company's total sales increase
Demand for notes of Central Bank of Azerbaijan exceeds supply
Assessment of damage caused by Armenia to Azerbaijani civilian objects continues
Volume of cargo passing through Astara terminal increasing from year to year
Criminal case opened against more terrorists used by Armenia against Azerbaijan
National Bank of Kazakhstan determines strategic initiatives for 2021
Bukhara oil refinery produces floating pontoons to eliminate loss of light hydrocarbons
Azerbaijan establishes Agency for Development of Economic Zones
Azerbaijan developing employment programs for future residents of liberated lands
Georgia decides to increase subsidies for flour
UK can help Azerbaijan to demine liberated lands - ambassador
Azerbaijan, UK discuss issues of development of co-op in area of defense
EU, FAO supporting agriculture and rural development in Georgia
Automated warehouse system introduced at Uzbekneftegaz JSC
Projected volume of trade turnover between Turkmenistan, US for 2021 named
Kazakhstan's monetary base surges in value in Dec. 2020
Uzbekneftegaz manages to reduce imports of materials, technical resources
Elon Musk to offer $100 million prize for 'best' carbon capture tech
Kazakhstan boosts petroleum oil exports to Spain despite COVID-19
Georgia to restore operations of municipal transport, schools and stores
Application of TRACECA single transit permit digitalizes transport and logistics sector
Azerbaijani gymnasts to take part in European Championships in Switzerland
Kazakhstan deregulates tanker call-in services for oil crude, products export
Azerbaijan's energy company building new substation in liberated Shusha (PHOTO/VIDEO)
Regular flights to resume from February 1 in Georgia
PASHA Bank's branch in liberated Shusha to help implement territories' restoration initiatives
Nar offers special discounts for Karabagh war veterans
Austrian Enhanced Resource Company talks about work plans in Azerbaijan for 2021
Azerbaijani banking community eyeing dev't of entrepreneurial ecosystem in liberated territories
German government sees 2021 GDP growth of 3%
Kazatomprom completes COVID-19 testing at its JV with French Orano
Introduction of Euro-5 diesel standard postponed in Georgia
Azerbaijan studying Turkey's experience to create liberal electricity market
Baku Higher Oil School holds discussions on ‘Natural resources of Karabakh’ (PHOTO)
Volume of vegetable oil imported by Turkmenistan from EAEU revealed
Major foreign companies to support logistics and fulfillment center creation in Kazakhstan
Volkswagen operating profit drops by half in 2020
Azerbaijan discloses commercial banks' total share in GDP
Azerbaijan-Turkmenistan co-op development serves economic well-being of region - MP
Georgian government's action plan has direct, clear priorities - PM
Demand for dairy products of EAEU countries increases in Turkmenistan
Cotton fiber production increases in Uzbekistan
All preventive measures to be taken in connection with COVID-19 at Azerbaijani schools
Public Council under Azerbaijani Ministry of Ecology to assess damage in liberated lands
Azerbaijan's PASHA Bank talks government initiatives for restoring liberated territories
Passenger traffic of Georgian airports significantly down
Tutoring activity may be resumed in Azerbaijan soon - minister
Turkmenistan increases import of flour from EAEU
China's CEIC, China Reform set up $1.55 billion new energy fund
All news