Energy Agency: It is unlikely that the price of oil will reach $80 per barrel before 2020

The International Energy Agency has predicted that despite an unprecedented drop in investment, it is unlikely that oil prices will reach $80 per barrel by the end of 2020. According to Reuters, the International Energy Agency in its World Energy Outlook report published on Tuesday, November 10, forecasts that global oil demand will increase by about 900,000 barrels annually, gradually reaching a total of 103.5 million barrels per day by 2040. The fall in oil prices to around $50 per barrel this year has led to a sharp decline in U.S. shale oil production, one of the major reasons for the oversupply of oil in international markets and consequently a 50% drop in oil prices over the past 12 months. Nevertheless, Fatih Birol, the Executive Director of the International Energy Agency, stated that the agency expects oil prices to reach around $80 per barrel by 2020. Mr. Birol added, 'We estimate that investment in oil will decrease by about 20% this year. But perhaps more importantly, this decline may continue into next year.' According to the International Energy Agency's estimates, higher-cost oil producers in Canada, Brazil, and the United States will be hit harder than the decline in oil prices, but this could be compensated by an increase in oil supply from Iran and Iraq. With the reduction or lifting of international sanctions against Iran under the pretext of Tehran's controversial nuclear program, Iran's crude oil supply will increase. In this regard, Iran needs 'years of time' to revive its oil production.