It argues that the price crash of the past two and a half years and the accompanying reduced investment in new capacity could bring about a supply crunch and soaring prices at the turn of the decade.
The agency’s latest five-year analysis and forecast presents $50 to $80 per barrel as the crucial price range that would decisively affect markets.
If prices — which have recently averaged about $55 per barrel — remain closer to the $50 mark, not only will general industry investment remain low but shale oil production particularly in the US will start falling as of the early 2020s.
At
