Say Goodbye To Cheap Oil… For Now

Let’s look up from the short- and mid-term picture and we see quite well why oil cannot be real cheap anymore in the future. We simply are at the point where we have exhausted much of the easy oil. There still is some but it does not suffice to quench the eternal thirst for more of the black goo. So we go into harder oil. Harder is more expensive, but its also much more plentiful. We are nowhere near running out of oil – just of easy oil. This is 5 years old.

Oil prices will be much higher over the next few years than previously thought, according to a new report from Barclays. The investment bank significantly raised its pricing forecast for 2020 and 2025 in its annual medium-term oil report. Barclays expects Brent to average $75 per barrel in 2020, up from a previous estimate of $55, while prices may average $80 in 2025, up from $70 previously.

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