The head of the International energy Agency (IEA), Fatih Birol, believes that some increase in oil prices is expected as early as 2017 When it is impossible to avoid fluctuations in the oil market.
“Investment in oil production is diminishing, he said. – It can create an unstable situation with the supply on the market and cause sharp fluctuations of quotations”.
The oil market is characterized by strong inertia, that is, investments made a few years ago, only now turn into running projects. The reduction in investments in 2014-2015 will also influence the market especially in the future several years, but the first signs we will see in 2017, although, of course, this factor will play a small role.
However, the expectations of investors and traders will also maintain positive growth rates, but Birol notes that it will remain low oil prices.
Apparently, at the next meeting of the countries “the seven” in Japan, which is scheduled for 26-27 may, the situation on the oil market will be one of the main topics. The G7 countries, especially Canada and the USA, interested in the restoration market, but nobody wants high volatility and excessive sharp rise.
But if in the coming months the company will again begin to actively invest in exploration and production, by 2020 the market will be back to a noticeable shortage of supply.
