Oil to remain around $55 this year: IEA
Source: Market Watch
By Sara Sjolin
LONDON (MarketWatch) — Don’t be fooled: Oil prices might have staged impressive rallies over the past two weeks, but that could be it for this year’s price rebound.
In its “Medium-Term Oil Market Report” published Tuesday, the International Energy Agency said it sees Brent oil LCOH5, -0.82% averaging $55 a barrel in 2015, below even Brent’s currently depressed level of $58.
It only looks a little better for 2016, where Brent prices are expected to climb to $60 a barrel, before sneaking up to $73 by 2020, according to the IEA’s price assumptions derived from the futures curve.
Despite the recent advance for crude futures, “the market does not seem to be expecting prices to revisit earlier highs anytime soon. Not only have prompt prices collapsed, even price expectations for the back end of the curve have been significantly downgraded,” the agency said in the report, which was published on the first day of the International Petroleum Week event in London.
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