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IEA calls $70/barrel by 2025 possible

In a long-term forecast until 2040, the IEA is considering several scenarios for the development of energy markets after the pandemic

MOSCOW, October 13. /TASS/. / TASS /. The cost of oil in the next 20 years will remain above $50 per barrel, and in the baseline scenario may rise to $71 per barrel by 2025, to $ 76 by 2030 and to $85 per barrel by 2040, according to the report by the International Energy Agency (IEA) World Energy Outlook 2020, received by TASS on Tuesday.

In a long-term forecast until 2040, the IEA is considering several scenarios for the development of energy markets after the pandemic. Thus, in the basic scenario of the Stated Policies Scenario (STEPS), the agency assumes that the world will gradually be able to gain control over the coronavirus pandemic in 2021. In this case, the global economy will return to pre-crisis levels by the end of the same year. Also in this scenario, countries continue to implement their existing climate target policies.

If the coronavirus is not defeated in 2021, and the economic recovery is delayed (Delayed Recovery Scenario), then the oil price will rise in this case too, but already to $ 59 per barrel by 2025 and to $ 72 per barrel by 2040. In a more radical scenario (Sustainable Development Scenario), in which humanity is accelerating the achievement of the climate targets of the Paris Agreement, oil is assumed to cost $57 per barrel in 2025, but by 2040 it drops to $53 per barrel.

Long-term price increases will be driven by the need to balance supply in the market. And to stimulate investment, prices are required to rise to $ 70 per barrel over the next five years, the IEA report says. "After that, prices will stabilize in the range of $ 75-85 per barrel," the forecast says.