Oil prices reach $ 100 per barrel by 2024, after the establishment of market balance. This opinion was expressed by Director of consulting at IHS in Russia Maxim Nechaev, reports video News Service on Tuesday, September 6.
According to him, the increased cost of raw materials will be associated with a renewable balance of supply and demand. “The world economy will continue to rise, turbulent times will pass and excess oil which are having now, will be spent,” said Nechayev. He added that the economy is going to need hydrocarbons.
IHS expects rebalancing of the oil market in late 2017 — early 2018, said the Director of consulting. “At the same time will affect the situation freeze some projects and reduce capital costs, which will affect production,” he said.
As at 16:00 GMT on 6 September Brent crude on the ICE futures exchange was trading at the level of 46.72 per barrel. It fell in price by 1.91 percent from the previous session.
September 5, President Vladimir Putin said that the current oil price is unfairly undervalued. On the same day during the G20 summit in Hangzhou Chinese heads of ministries of energy of Russia and Saudi Arabia agreed on cooperation to stabilize the oil market.
After the joint statement of Moscow and Riyadh the price of Brent crude rose almost five percent.
The last time the price of oil exceeded $ 100 per barrel on 8 September 2014.
