Baku. 14 November. REPORT.AZ/ The International Energy Agency (IEA) has lowered its oil price forecast by 18% to $ 83/bbl by 2025, and 11% for 2040 with $ 111/bbl.
Report informs citing the RIA Novosti, says the IEA World Energy Outlook 2017.
"According to the new scenario, taking into account the plans and disclosures of oil states the decline is going to take place until 2025. Then prices will increase relatively rapidly until 2040", report says.
The agency also noted that changes in the forecast are mainly explained by three factors. The first is growth in forecast of shale oil and gas condensate reserves in the United States from 80 billion bbl to 105 billion bbl, the second is the gradually decreasing cost of production and ultimately the reduction of oil prices and the third is the reduction of short-term investments as a result of expiration date of production projects.
This will enable companies to supply oil market in short period of time as demand for oil increases.