Kuwait - KUNA
Average world oil price is predicted to be in the vicinity of USD 80-85 per barrel in 2015, according to a recent economic report.
To prove that, the current dip in oil prices could push global economic growth and create higher world demand, thus sending oil prices into rebounding, said the report compiled by the Diplomatic Center for Strategic Studies.
Several OPEC member states have now realized that a cut in output in a bid to boost oil prices would necessarily result in a hike in non-OPEC production, thus losing an OPEC market share, it indicated.
The OPEC is seeking to limit oil production at a high cost margin, and though the clear-cut target is shale oil now worth USD 65-90 per barrel, long-term oil investments would be consequently affected, the report suggested.
Such investments include Russian stock development in the North Pole and deep water oilfield development in Brazil, which both require oil prices to be over USD 100 per barrel, it added.
But, the drop in oil prices had been expected due to oil oversupply at world markets whether on the part of OPEC or non-OPEC members, not to mention low global demand for oil amid international economic slowdown.
As for oil price scenarios for 2015, the report said the price could remain in the neighborhood of USD 70-75 per barrel on average in the first quarter of 2015.
Another scenario suggests that the current drop in oil prices could lead to global economic growth at rates that allow for world demand for oil to be on the increase, thus sending oil prices into a hike of USD 80-85 pb.
The last scenario is a possible rise in oil prices, provided that geopolitical problems escalate inside or outside the Middle East region, it said.
In case of disruption of oil supply from Iraq, Iran, Russia and Libya, the oil price is mostly likely to hit the USD 100 mark, the report concluded.