(MENAFN - Arab Times) Price of the crude oil is forecast to fall to 80 per barrel in the coming few years, due to forecast growth of non-conventional oil output, according to a Kuwait-based think tank. The Diplomatic Center for Strategic Studies said in a report, released on Tuesday, that it is difficult to make specific anticipations regarding the crude prices due to prevailing variables on the market. On unpredictable factors, it mentioned international and internal conflicts, particularly in oil producing countries, such as Libya, Nigeria and Iraq.
Nevertheless, the crude prices will remain, mainly, affected by supply and demand. Future oil prices will be affected with emerging factors, such as cost of supplies of non-conventional crude, namely shale oil. Other major factors are OPEC states' readiness to invest in the oil industries, namely in drilling and exploring as well as the capacity to develop used oil wells. World oil demand, which amounted, in 2013, to approximately 89.5 million barrels per day, would reach some 94.5 million bpd in 2018.
Industrial nations' demand, which stood at 45.5 million bpd in 2013, would drop to 44.5 million pbd in 2018.
The report said the oil demand by China and India would continue to grow, by three million bpd, some 60 percent of the global oil demand growth. It mentioned other factors that will influence the prices in the foreseeable future; namely world economy growth, re-stressing that extraction of non-conventional oil is forecast to be a key influencing factor in this respect. Shale oil production in 2035 is forecast to hover at 10-14 million bpd, some 12 percent of the world crude output, and when this happens, the prices will be in the range of 80-100 pb.
Meanwhile, price of Kuwaiti crude oil went up 84 cents settling at 107.33 per barrel on Monday compared to 106.49 pb on Friday, said Kuwait Petroleum Corporation in a statement on Tuesday. Meanwhile, Crude Oil Brent futures prices fell by 21 cents at London Stock Exchange settling at 111.56 pb. The American contracts for February dropped by 41 cents, settling at 98. 91 per barrel at New York Mercantile Exchange (NYMEX).