Low oil prices are here to stay for at least a few years, according to a recent report by USA Today.
The newspaper quotes the International Energy Agency’s (IEA’s) World Energy Outlook 2015 as saying that oil prices will tick upward but not enjoy a big rally over the next several years, reaching anywhere from $50 to $80 per barrel by 2020.
Investors barely budged on the news, according to USA Today. “The price of Brent crude oil was relatively flat at $47.30 slightly after 11 a.m., and the price of West Texas Intermediate crude was up 0.7% to $44.21,” the article states.
Low prices could continue beyond 2020, according to IEA, which reported, “a more prolonged period of lower oil prices cannot be ruled out.” Member countries of the Organization of the Petroleum Exporting Countries (OPEC) could keep prices low to compete with new sources in the U.S. and elsewhere.
“After 2020, the IEA suggested that investments in alternative energy, cuts to oil subsidies and energy efficiency policies will dampen future increases in oil demand,” according to USA Today.