The International Energy Agency (IEA) has improved its forecast for oil price by 6% to $88 per barrel in 2025 and by 0.9% to $112 per barrel in 2040, according to IEA’s World Energy Outlook 2018 report.
According to the New Policies Scenarios, taking into account current countries’ energy policies and their announced plans, oil price is projected to gradually increase from the average price of $52 per barrel in 2017 to $88 per barrel in 2025, $96 in 2030, $105 in 2035 and $112 in 2040.
Moreover, the IEA expects world oil demand to increase from 94.8 million barrels per day in 2017 to 106.3 million barrels per day in 2040.
"China and India are responsible for nearly half of the total increase in demand to 2040. The heavy lifting on supply is led initially by the United States, but later on the Organization of the Petroleum Exporting Countries (OPEC) steadily increases its share of total oil supply," Sputnik cited the report as saying,
The agency expects that in the long term trucks, petrochemicals, aviation and cars will be among the largest drivers of world oil demand.
According to the IEA, the largest supply crunch could be expected in the oil sector, as the average level of approvals of new conventional crude oil projects over the last three years "is only half the amount necessary to balance the market out to 2025."
According to the Current policies scenario, oil prices may reach $137 per barrel in 2040.
