Oil prices will not go beyond $50 a barrels

Oil prices will not go beyond $50 a barrels

Editorial Staff
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With overproduction and growing reserves, analysts and institutions are in line and confirm this year will not be turning point. In agreement also the EIA and Russian Energy Minister Novak, according to whom 2017 might see the same levels

Oil price predictions continue to look bleak. The combination of overproduction and demand will likely keep the oil at around $50/b for this year as well. A prediction also confirmed in these days by Russian Energy Minister Alexander Novak, according to whom crude oil will fluctuate between $40/b and $50/b. A nonetheless more optimistic outlook compared to BNP Paribas, which set its predictions at $35 to $40 as well as the the World Bank outlook of $41/b. The causes for the price stall: overproduction, but also the increasing reserves – US reserves for example have reached record levels. Not to mention the failed agreement attempt in Doha last April to set extraction limits (in June oil producing countries will once again try to reach a new agreement. Lastly, If this situation were to continue, according to the Energy Information Administration, 2017 will also run the very real risk of not seeing the price per barrel rise over $50. Somber perspectives for the industry, following years of high prices.