Oil prices will rise to $130 by 2019
By Andrew Smith, IGN Oil prices are set to rise to a record high in 2019, as oil and gas production ramps up and the global economy begins to recover.
The Oil and Gas Production Company (OGPC) recently released their forecast for global oil production, which they expect will exceed 400 million barrels per day by 2027, and by 2025 will top 1.3 billion barrels per year.
This year’s estimate is the first time the figure has exceeded 500 million barrels.
According to the OGCP, total oil production is expected to grow by 8.8% from 2017 to 2020, with output growth exceeding the global average by 0.2%.
The OGCPC also predicts oil will reach $130 per barrel by 2019, and $135 by 2026.
In total, the oil and natural gas sector accounts for a third of global GDP, with production in oil and related natural gas accounting for nearly half of the global total.
This is the third consecutive year that oil and other natural gas production has grown in line with economic growth, with growth averaging about 0.4% per year from 2015 to 2020.
In a recent report, OilPrice.com predicted that oil prices would increase by $100 in 2019 and $125 in 2020, due to a variety of factors including:Improved demand from China and Europe, increased demand from India, and a stronger dollar.
This year’s OGCpcs forecasts are based on a series of scenarios, which are not set in stone and are subject to revision.
The latest projections will be released on Thursday, February 11.