OPEC released a new World Oil Outlook (WOO) on Wednesday, in which the organization expects the price of crude oil to rise to $70 per barrel in 2020, and further improving to $95 per barrel in 2040.
As of Wednesday morning, the cost of one barrel of WTI crude oil was $37.07. It was $30.74 on Monday.
This week global oil prices fell to their lowest levels in 11 years – since July 5, 2004 – due to a mounting surplus in supply.
In June 2014, the price of oil hit a high point at $114 per barrel before the nosedive began.
In the charts below, see the trend of oil prices for the past 6 months, and two years:
The price plummet has had a massive impact on the manufacturing industry, as industrial manufacturers and distributors tied to customers in the oil & gas market have suffered reduced demand. Many companies on Industrial Distribution's 2015 Big 50 list have endured a rough fiscal 2015, with widespread declining sales and profits.
"The need to develop oil production in more expensive areas will drive long-term oil prices higher,” OPEC said inits report. "The supply and demand balance in 2015 has been one of oversupply, with stock levels rising to well above the five-year average. Despite this market instability, OPEC has continued to be an efficient, reliable and economic supplier of oil."
OPEC on Wednesday predicted oil prices would rebound, but that it expects to reduce its own production in the coming years. This is a change of tune from earlier this month when OPEC members said they would keep producing at full capacity without a cap limit. OPEC said it expects to cut its own supply to 30.6 million barrels a day in 2019 – more than 1 million barrels per day lower than its November production of 31.7 million barrels per day. The November mark was OPEC's highest production rate in three years.
