Expert: “Average price of oil will not go below USD 65 this year”

Expert: “Average price of oil will not go below USD 65 this year”
# 25 June 2021 13:13 (UTC +04:00)

Taking into consideration, growth of the country economy and increase of demand for energy during the post-COVID period, the average price of a barrel of oil will not be below USD 65 this year,” said the head of Oil Research Center, an expert in the field of energy Ilham Shaban told APA-Economics.

According to him, an increase in demand for energy in the summer months will also impact to average price’s being at the mentioned level.

I. Shaban reminded average price of oil was USD 42 last year. In November-December of 2020, the average price of oil was forecasted to be USD 47-48 for 2021. After making corrections, this indicator was increased by USD 10 and reached USD 57-58.

“Taking into consideration demand for energy in summer months and growth in country economies during the post-COVID period, it can be thought that average price of oil will not be below USD 65 for the current year,” noted expert.

I. Shaban also added that reach of oil prices over USD 70 on the world market and exceeding USD 75 at the beginning of the week are related to several factors. The basis of these factors is reports, prepared by both the OPEC and International Energy Agency (IEA) regarding oil shortage on the world market for the second half of the current year: “Very high mood emerged on market participants on price rise on its background.”

According to I. Shaban, oil prices’ exceeding USD 75 this week is related to abnormal heat in the Northern Hemisphere. High temperature indicators are observed in Russia, several European countries, Middle East, which means appearance of the great demand for energy.

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