Oil prices are expected to remain weak due to the volume volatility of oil production in non-OPEC countries in 2018-2019, according to the GECF Global Gas Outlook 2040.

Oil price forecasts are predicated on the same determining factors that shape today’s oil prices including: economic growth, the interplay between global oil supply and demand, Organization of the Petroleum Exporting Countries (OPEC)’s behavior, movement in oil inventory levels, financial market dynamics, industry production costs, and geopolitical events - particularly those that have the potential to disrupt supply, the report says.

The GECF Outlook considers that, in the short term, it is expected the prices to remain weak due to a more pessimistic economic perspective than previously anticipated and to the absence of a strong decline in non-OPEC output. In the medium term, the cost of producing the most expensive (marginal) barrel is an important component for oil price projections. Although the cost of producing oil varies significantly depending on the geology of the producing basin, the technology employed, and the fiscal terms applied to producers by host governments.

The Gas Exporting Countries Forum (GECF or Forum) is an intergovernmental organization established in May 2001 in Tehran, Islamic Republic of Iran. The Member Countries of the Forum, are: Algeria, Bolivia, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Qatar, Russia, Trinidad and Tobago, the United Arab Emirates and Venezuela. Azerbaijan along with Iraq, Kazakhstan, the Netherlands, Norway, Oman and Peru have the status of Observer Members.

AZERTAC