Some companies will be hard to restore production after the current price shock, experts predict
It is expected that investments in the oil and gas production in 2020 will be reduced by 32%, to $328,4 billion.
The decline in investment in the oil and gas production as a result of the collapse of their value on the world market could lead to a new jump in prices. This opinion was expressed by a number of investors and analysts surveyed by the American edition the Wall Street Journal.
They predict a rise in prices to $100 per barrel by 2022. According to investment Director of Northern Capital Trace Trevor woods, the financial pressure on oil producers will be significant due to the current falling prices.
“Some producers will be really difficult to recover the loot. Therefore, prices can quite easily reach $150 per barrel by 2025,” he said.
It is expected that investments in the oil and gas production in 2020 will be reduced by 32%, to $328.4 billion, according to calculations by the International energy Agency.
It will affect oil production, which, according to analysts of JPMorgan Christian fry will fall to five million barrels a day. “Can we see the growth of oil up to $100 over the next two years? Of course,” he said.
As previously reported, Saudi Arabia has raised oil prices. For Asia, the Saudi oil rises third month in a row. Also prices will rise for the United States and Northern Europe.