Oil prices to rise once world economy recovers
Oil will return to 100 dollars a barrel once the world economy recovers, it has been reported
Oil will return to 100 dollars a barrel once the world economy recovers, it has been reported. The International Energy Agency (IEA) found that by 2030 prices will even exceed 200 dollars a barrel.
The IEA's World Energy Outlook report, obtained by The Financial Times ahead of its release next week, states: "While market imbalances could temporarily cause prices to fall back, it is becoming increasingly apparent that the era of cheap oil is over."
Average prices are estimated to exceed 100 dollars a barrel between 2008 and 2015. This is a steep rise compared with today's level of 60-70 dollars.
The predicted increase is blamed on the cost of pumping oil from older fields and difficulties in finding enough new oil. The report added: "Current global trends in energy supply and consumption are patently unsustainable."
The IEA, the energy watchdog for the developed world, estimated that by 2010 oil companies will have to commit to projects producing seven million barrels a day if the world is to avoid problems with supply by the middle of the next decade.