Russian Accounts Chamber Chairman Alexei Kudrin said Thursday that global oil prices will continue to rise for another three years amid high demand, but may drop afterwards.
MOSCOW (Pakistan Point News / Sputnik - 27th September, 2018) Russian Accounts Chamber Chairman Alexei Kudrin said Thursday that global oil prices will continue to rise for another three years amid high demand, but may drop afterwards.
"For now, we are projecting somewhat higher oil prices. I think it will continue for some two or three years. ... In the coming three years we see that demand for oil may grow by more than 3 million barrels a year," Kudrin told the Rossiya-24 broadcaster.
The official added that it was difficult to accurately predict what oil prices would be in three years, but there were forecasts projecting dropping prices in some 5-6 years.
"Iran, if faced with sanctions, will cut production by 1 million [barrels of oil yearly] ... The United States may boost production by another million, but it will still be not enough to cover the demand. So, the demand is likely to be higher than the supply. That is why we think that prices will somewhat grow. But beyond the three-year span we can expect them to drop," Kudrin specified.
Oil prices reached a historic minimum in 2016, forcing the the Organization of the Petroleum Exporting Countries (OPEC) and other oil producers to cut production by a total of 1.8 million barrels per day. The strategy brought Brent crude from slightly over $43 per barrel in 2016 to over $72 in 2018.
