Opec said earlier this month that it was “comfortable” with crude oil prices at between $70 and $80 per barrel.
Well, if the latest analysis from the Centre for Global Energy Studies is to be believed, its members will remain “comfortable” for a while longer.
The centre’s “reference case” - its most likely scenario - predicts that macroeconomic declines will cut oil demand but supplies will also fall with fewer new projects coming onstream. Overall, the study says:
The rates of growth of both oil demand and oil supply decline in 2H10, but the slowdown on the demand side is more pronounced.