OPEC Assumes Oil Price Will Recover Gradually to $80 in 2020
- Non-OPEC supply estimate for 2017 cut 1 million barrels a day
- Group sees limited oil-demand response to lower prices
Oil Price: Why the Big Discrepancy Between Goldman, OPEC
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OPEC is assuming the oil price will rise gradually to $80 a barrel in 2020 as supply growth outside the group weakens, a slower recovery than several member nations have said they need.
The average selling price of the Organization of Petroleum Exporting Countries’ crude will increase by about $5 annually to 2020 from $55 this year, according to an internal research report from the group seen by Bloomberg News. Iran and Venezuela said they would like to see a price of at least $70 this month and most member countries cannot balance their budgets at current prices.