The cost of barrel of Brent crude fell below the psychologically significant mark of $50 at the start of the year. However the world’s top energy watchdog has signalled a potential recovery in the price of crude as it anticipates a slowdown in oil production growth outside the Opec cartel.
The International Energy Agency (IEA) reduced its expectation for supply growth outside Opec by 350,000 barrels per day (bpd). It now expects non-Opec countries to produce 950,000 bpd this year, bringing total production excluding the cartel to 57.5million bpd in 2015.
It also says though that it’s too early to predict how low the price will go in the current down phase of the price for oil. So, prices on the up soon enough maybe. We shall see.
