Oil prices won't top $100 in the next decade, OPEC predicts

Benjamin Chiou Sharecast | 11 May, 2015 15:53 - Updated: 16:18 | | |

Oil rig, oil & gas, drilling

Crude will stay below the $100-a-barrel (bbl) level for at least the next 10 years, according to the Organization of Petroleum Exporting Countries (OPEC).

The forecast, from a draft report of an OPEC staff meeting seen by The Wall Street Journal, suggests that the price of Brent will only be $76/bbl by 2025 in the most optimistic scenario.

Its most pessimistic assumption, however, predicted that crude could drop to as little as $40/bbl within a decade.

A delegate at the OPEC meeting in Vienna last week told The Wall Street Journal that "$100 is not in any of the scenarios".

OPEC has refused to cut production in spite of the current supply-demand imbalance which has seen 60% wiped off the value of oil since the crash started in June 2014.

It is thought that most member states need prices to be higher than $100 a barrel to cover balance their budgets.

OPEC's monthly oil market report for May is due for release on Tuesday.

Brent was down 0.8% at $64.85/bbl on Monday afternoon.

More news

17:40 Europe close: Spanish stocks underperform

European stocks ended the session little changed amid moderate selling pressure on Spanish stocks on the back of the latest news around the attempted independence referendum in Catalonia and ahead of the US Federal Reserve's policy decision later in the session.

17:29 Apple discovers issues in new smartwatch 48 hours before shipping

Tech juggernaut Apple announced on Wednesday that its new Series 3 smartwatches had been experiencing significant connectivity issues just days before they were due to be shipped.

17:24 London close: Strength in Sterling puts a lid on stocks

London stocks traded fairly flat on Wednesday as the pound popped higher on the back of stronger than expected retail sales data, even as traders waited on the US Federal Reserve's policy announcement later in the day.

16:36 Thursday preview: Capita guidance and UK public sector debt under spotlight

Thursday in Europe will initially see any fallout from the US policy adjustments overnight, while in the UK Capita and Mitchells & Butlers investors have results to pore over, with an update on the public deficit later in the morning.

16:31 Bed Bath and Beyond fails to meet expectations again

Bed Bath and Beyond (BBBY) shares suffered after the New Jersey-based home goods retailer fell short of market expectations yet again.

16:56 Ryanair may face new pilot battle amid flight cancellation fallout

Budget airline Ryanair was battling to deal with the 2,100 flights it cancelled this week after an error caused by a mix-up of pilots’ holidays, which could be followed by further problems with repercussions for its growth plans.

16:25 US open: Stocks mixed ahead of FOMC, Apple drags

Investors are sitting on their hands ahead of the US central's bank's eagerly-awaited policy meeting.

15:53 FTSE 250 movers: Domino's rallies on buyback; Metro hit by Macquarie note

London's FTSE 250 was up 0.1% to 19,554.71 in afternoon trade on Wednesday.

16:56 Higher imports, domestic output boost US oil stockpiles, DoE says

US oil inventories jumped last week even as rising imports offset a partial recovery at the country's refineries.

15:36 Investors told of 600 Group's 'confidence'

Machine tools and laser systems designer, distributor and manufacturer 600 Group updated the market on its trading on Wednesday, as investors gathered for its annual general meeting.