US Department of Energy presents oil price forecast

There are 1,500,000 barrels per day oil surplus on the global market, but the figure is gradually reducing, leading to an increase in the oil price, the head of the US Energy Information Administration, Adam Sieminski, said at a conference at the Center on Global Energy Policy at Columbia University. According to him, we can expect a normal level of balancing of supply and demand on the world oil market in a year.

Seminsky pointed out that the situation on the market is currently influenced by several factors, particularly by the cost of US shale production. According to him, only if the price rises to $50-75 per barrel will companies begin drilling new wells, TASS cited Sieminski as saying.

The First Deputy Energy Minister of Russia, Alexey Teksler, said yesterday that nobody will endure $20 a barrel in the long term.