Oil prices below USD 100 until 2020- OAPEC
Date
1/25/2016 6:25:26 AM
(MENAFN- Kuwait News Agency (KUNA)) KUWAIT Jan 25 (KUNA) -- Oil prices are expected to recover in the foreseeable future however they will not exceed USD 100 per barrel until 2020 according to a study conducted by the Organization of Arab Petroleum Exporting Countries (OAPEC).The developments in factors affecting demand and supply on oil are still playing a role in international markets where they led to a severe drop in prices since June 2014 the study said.These factors include the impact of the expected return of Iranian and Libyan oil in markets and the level of cooperation between non-OPEC member of top oil producers and OPEC member-states it noted.Moreover the increase in US shale oil production has played a big role in the overflow of oil supply in international markets OAPEC said. The recent developments in China's economy and the European sovereign debt crisis are also other factors affecting prices it also added.Meanwhile oil revenue of OAPEC member-states were strongly affected by the drop in prices as primary statistics show that the total annual exports withdrew by 18.8 percent from 2012 to 2014 the study said.The unstable prices also affected the surplus in trade balance on developing Asian economies. The surplus rose by about USD 80 billion in 2014 (51.7 percent) reaching USD 234.2 billion.Furthermore international oil companies were affected by the drop in prices as they suffered a decrease in profit rates and negative share performance statistics.The study recommended a number of measures to face the effects of unstable prices including creating different income sources to achieve sustainable development and allow all sectors to contribute to the country's income in order to achieve economic diversity.(end) osj.msa.ag
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