$80 Oil by 2020

$80 Oil by 2020$80 Oil by 2020

Oil prices are set for a slow recovery, according to the latest report from International Energy Agency, which cautioned against the deep investment cutbacks in the industry.

In its latest World Energy Outlook, the IEA’s central scenario for oil prices forecast that the oil market would rebalance at $80 a barrel in 2020, “with further increases in price thereafter.”

IEA executive director Fatih Birol said the organization did not think a world in which the price of oil was stuck at $50 for “many many years” was a likely scenario, CNBC reported.

Birol added that Iraq production growth would slow down due to geopolitical turmoil, while growth in Brazil, Canada and Russia would also not be as strong as before.