Oil prices can sharply increase after 2020 – IEA

BAKU. KAZINFORM Global oil supply could struggle to keep pace with demand after 2020, risking a sharp increase in prices, according to the Oil 2017 report of the International Energy Agency (IEA), Trend reported.

The demand and supply trends point to a tight global oil market, with spare production capacity in 2022 falling to a 14-year low, according to the report.

“In the next few years, oil supply is growing in the United States, Canada, Brazil and elsewhere but this growth could stall by 2020 if the record two-year investment slump of 2015 and 2016 is not reversed,” said the IEA analysts.

Oil demand will rise in the next five years, passing the symbolic 100 mb/d threshold in 2019 and reaching about 104 mb/d by 2022.

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