Report: OPEC’s outlook for next 22 years contributes to increase in oil price - ANALYSIS

Baku. 28 September. REPORT.AZ/ Brent crude price increased by $12 or 17% to $82 a barrel from $70 during the past 1.5 month. The increase in price to above $80 occurred during the past 3-4 days. Report’s analytical group says that the price hike depends not only on demand but also on other indirect factors. One of them is a decision made by OPEC at a meeting held in Algeria last week.

OPEC Secretary General Mohammad Sanusi Barkindo noted that the demand for all energy types will increase starting from the end of this year. Therefore, the oil will be attached a special importance. By 2040 the demand for oil will increase from 32 million barrels to 112 million barrels, of which 95% will be met by developing countries.

According to estimations, there will be need for $11 trillion in investment to meet the growing demand for oil. This figure causes consumers to think that it won’t be easy to maintain the balance between demand and supply. It means that oil producers and exporters may not be able to invest such an amount of money in this business. And this stimulates rise in oil price.

Report’s analytical group believes that oil price will reach $100 a barrel, even exceed it by the end of the year. However, the result of OPEC’s next meeting to be held on November 11 in Abu-Dhabi will play a role in price formation.