The OPEC oil cartel sees only a gradual improvement in the global crude market, with prices recovering to above $70 per barrel after four years, according to a report released Wednesday.
With the global benchmark oil price touching an 11-year low of $36.04 on Monday, the cartel which produces a third of the world’s crude said that it foresees a “gradual improvement in market conditions as growing demand and slower than previously expected non-OPEC supply growth eliminate the existing oversupply and lead to a more balanced market”.
The Organization of the Petroleum Exporting Countries, in its annual World Oil Outlook report, bases its reference scenario on $70.70 for a barrel of crude in 2020 and $95 in 2040.
Those projections represent a sharp drop in market value compared to last year’s report, which predicted a nominal price of $110 for the rest of this decade.
