The US Department of Energy’s Energy Information Administration (EIA) has released annual forecasts for oil prices for the foreseeable future. The document was published on the website of the department.
In one of them, optimistic, raw materials are expected to grow beyond the limit. By 2050, its price will rise to $ 173 per barrel, well above the historical record. In the base case, the EIA predicted $ 95, while the low price scenario calls for prices around $ 48.
A year ago, before the start of the coronavirus pandemic, the agency was optimistic about $ 183 per barrel. However, over the year, there was not only a sharp drop in the cost of raw materials, but also a sharp tightening of the carbon policy of developed countries, including the United States itself, which by 2050 intend to radically reduce oil demand to combat global warming. However, the forecast correction is restrained.
Brent price peaked in July 2008. Then it was trading at $ 147.5 per barrel. Last spring, in the midst of the first wave of the coronavirus pandemic, the price dropped below $ 20. This situation has led to a record production cut by members of the OPEC + agreement.
The largest American oil producer ExxonMobil suffered an annual loss for the first time in 40 years. It amounted to $ 22.4 billion. British BP ended the year with a loss for the first time in ten years.
As of February 4, the cost of Brent is approaching $ 59 per barrel. However, the parties to the deal on limiting production more than once had to tighten up the parameters that they agreed on in April.