Don’t expect a big rebound in oil prices this year, or even next.
That’s the opinion of the International Energy Agency. It sees benchmark Brent crude averaging $55 a barrel this year and $60 next year as stockpiles continue to increase.
In its Medium Term Oil Market report the IEA says prices, which slid from $115 a barrel in June 2014 to a near six-year low close to $45 in January 2015, would likely stabilise at levels substantially below the highs of the last three years.
The IEA, which advises industrialised countries on energy policy, says shale oil has changed the market.
It is predicting that – thanks to shale – the United States will remain the biggest contributor of supply growth over the next five years with production pausing but continuing, despite the low prices.