Oil prices will not go up significantly in the next few years, according to analysts from the NCR rating agency.
Low oil prices may persist until 2025, according to analysts. Moreover, another meltdown in oil markets is also possible during this period. It will happen if OPEC + countries fail to reach a new agreement on cutting production and unleash a new price war.
Experts have proposed several scenarios for further development of the oil markets. One of them envisages oil prices at $30–40 per barrel; another one, at $45–50.
For Russia, the worst scenario is the one where the United States completely declines the agreement with other oil producing countries. The US may also start subsidizing its own oil companies. As a result, Russia’s revenue from oil exports may fall by 50-60% from the 2019 level, RBC reports.
Rusnano chief Anatoly Chubais believes there are three factors that will keep oil prices low in the future. The first is the replacement of internal combustion engines with electric ones. The second factor is global warming. And the third is the coronavirus situation, which, according to Chubais, is likely to continue. Because of this threat, people will travel less using cars or planes.