‘Oil prices would stay below $80 till 2020’

The International Energy Agency (IEA) says crude oil prices would remain lower than $80 a barrel up until 2020.

In the 2015 edition of its flagship World Energy Outlook (WEO 2015) publication, the reputable energy controlling body said the plunge in oil prices has set in motion the forces that lead the market to rebalance.

“In the central scenario of WEO-2015, a tightening oil balance leads to a price around $80 per barrel by 2020,” the agency’s report revealed.

Speaking on the security threats driven by use of unsustainable energy, Fatih Birol, IEA executive director, said global leaders must seize the opportunity of low oil prices to manage climate change.

“It would be a grave mistake to index our attention to energy security to changes in the oil price. Now is not the time to relax,” he said.

“Quite the opposite: a period of low oil prices is the moment to reinforce our capacity to deal with future energy security threats.”

Birol said carbon emissions must be stemmed to avoid rapid warming of the globe and drive usage of sustainable energy.

“As the largest source of global greenhouse-gas emissions, the energy sector must be at the heart of global action to tackle climate change.

“World leaders meeting in Paris must set a clear direction for the accelerated transformation of the global energy sector.

“The IEA stands ready to support the implementation of an agreement reached in Paris with all of the instruments at our disposal, to track progress, promote better policies and support the technology innovation that can fulfil the world’s hopes for a safe and sustainable energy future.”

The report also revealed that by 2040, China’s net oil imports are going to be nearly five times that of the United States, while India’s would import more than the European Union.