Oil prices are over 50% lower than they were last summer – and it’s going to stay that way until the end of the decade.
Fatih Birol, the executive director of the International Energy Agency told the Financial Times that a perfect storm will keep prices low until 2020 – low demand and bountiful supply.
The price of crude oil is around $44 per barrel. Last summer, it was around $115 per barrel. The IEA predicts that oil prices will not rise to $80 per barrel for at least four years.
Demand is expected to only grow by 1% by 2020 and by only 5% over the next 20 years. In tandem, oil supply is expected to be excessive and therefore will not fully consumed, leaving a glut in the market.