Plus one never knows the POO might shoot up Someone seems to think it will.
Full article via link below.
From BusinessDay 18/09/15.
'OPEC is assuming the oil price will rise gradually to $US80 a barrel in 2020 as supply growth outside the group weakens, a slower recovery than several member nations have said they need.
The average selling price of the Organization of Petroleum Exporting Countries' crude will increase by about $US5 annually to 2020 from $US55 this year, according to an internal research report from the group seen by Bloomberg News. Iran and Venezuela said they would like to see a price of at least $US70 this month and most member countries cannot balance their budgets at current prices.
"It's much harder for OPEC to lift prices" after the revolution of US shale oil, said Bjarne Schieldrop, Oslo-based chief commodities analyst at SEB, which forecasts Brent crude at $US73 by the end of the decade. "Eighty dollars by 2020 is pretty close to consensus view."
The price of crude has tumbled more than half in the past year as OPEC followed Saudi Arabia's strategy of defending its share of the global market against competitors like US shale oil. While both OPEC and the International Energy Agency expect growth in global supply to slow as low prices bite, Goldman Sachs predicts that a persistent glut will keep crude low for the next 15 years..... '
Someone seems to think it will.
