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Oil price forecasted to rise to $100

30 October 2014 08:23 (UTC +04:00)

While Brent crude for next month delivery has fallen 25 percent since June to $86.03 a barrel yesterday, the price for 2020 contracts was down less than one-fourth that to $91.53.

Today’s prices can’t “be considered the new normal, or at least not yet,” Paul Horsnell, head of commodities research at Standard Chartered Plc in London, said by e-mail yesterday. “The back end of the curve does seem happier above $90.”

Global consumption will grow to 99 million barrels a day in 2019 from 92.8 million this year, according to the Paris-based International Energy Agency.

Prices may rebound well before 2020. Brent, the global benchmark, will climb to as much as $100 a barrel next year, according to Sanford C. Bernstein & Co., Standard Chartered and Barclays Plc.

Standard Chartered expects a faster rebound, predicting Brent will average $105 a barrel next year and $115 in 2016. Bernstein forecasts an average Brent price of $104 a barrel next year, rising to $110 in 2016.