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

Benjamin Chiou WebFG News | 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.

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