Baku, Azerbaijan, Sep. 1
By Elena Kosolapova - Trend:
Oil prices will remain at low level in short-term for sure and even in mid-term, said Gurkan Kumbaroglu, President of International Association for Energy Economics and Chair of the Turkish Bogazici University’s Energy Policy Research Center.
“I don’t think we will see a 100 dollars mark again in the coming years,” Kumbaroglu told Trend.
He noted that oversupply resulted from shale boom coupled with weakened demand brought prices down to $30 a barrel. The business of many producers became unprofitable any more with this price level and they shut down and oil prices came up. But at $50 dollars level those companies getting online again.
“It is a level when supply increases. That makes us think that prices will remain now at the low level,” Kumbaroglu said.
The expert believes that oil price could grow maximum to $70 per barrel in the coming years, but then they will decrease again because of the increasing supply. He also noted that oil companies are adjusting now to the low price levels.
The price of the November futures for Brent crude oil was $47.2 per barrel Sept. 1. October futures for WTI reached $45 per barrel on Sep. 1.
Edited by SI
Follow the author on Twitter:@E_Kosolapova