IEA: Oil price will not reach USD 80 before 2020

Oil consumption is struggling to catch up with the growth in the supply of oil. But the falling oil price means the taps are being turned off on oil investments including US shale, according to the International Energy Agency.

Photo: Tullow Oil

The price of crude oil will not reach USD 80 before at least the end of 2020, despite an unprecedented drop in investments aimed at finding and extracting oil, according to a new report from the International Energy Agency (IEA), World Energy Outlook, reports Reuters.

One of the major reasons for the current low oil price is the flood of US shale oil in the market, contributing to oversupply. This price decline has forced US oil companies to scale back shale oil production, which is one of the most expensive processes in the oil industry.

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